ABSTRACT

In practice acquisition refers to the procurement of one company by other. The company being bought is known as Target Company and the other is called Acquirer this results in transferring off control of all the assets of Target Company to Acquiring Company. Mergers happen when two or more companies agree to transfer control of their assets to single entity, which may result in birth of new company. There are so many complexities and conflict of interests that it is very hard to identify the Target and Acquirer companies and same holds for Mergers and Acquisitions. In this paper the whole field is addressed as Mergers and Acquisitions (M&A) to avoid potential confusion and unproductive arguments (Agrawal & Jaffe, 2000).