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Mergers

Definition

A merger is the combination of two entities (usually companies) with the goal of creating a larger and/or more valuable and efficient operation. A merger is normally a negotiated event between two companies, unlike a hostile takeover by an outside company.

Using the term Mergers :

M. Bartholomew is an investment banker in New York City. He is dedicated to the art and science of mergers and acquisitions. He tries to work hard to ensure that the mergers between his clients are well-considered and are built to last.

Pay Special Attention To :

Unlike Mr. Bartholomew, there are some investment bankers that just focus on their fee (they normally receive a percentage of the value of the merger transaction) and do not especially care if the business principles involved are well-considered. Therefore, ensure you are very comfortable with the merger before going forward as an investment banker does not have a fiduciary duty to you or your company to ensure that the merger is right for the long-haul. Only you can ensure that this is true to the best of your ability.

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Related terms

Dawn Raid , Investment Banking

'Mergers' appears in the definitions of these other terms:

Acquisitions