ABSTRACT
The terms merger and acquisition (M&A) are often used synonymously, but they mean slightly different things. When one company takes over another and clearly establishes itself as the new owner, the purchase is called an acquisition. A merger happens when two firms agree to go forward as a single new company rather than remain separately owned and operated. A joint venture (JV) is a contractual, collaborative, single business transaction in which two or more companies engage in a partnership to take advantage of a market opportunity or to minimize risks.
