The Idea M&A contains all aspects connected with consolidation of companies i.e. selling, dividing and combining. As a result of merger of two or more corporate a new company is created. An acquisition consist in a purchase onefirm to other and the another corporate is not created. The reason of mergers and acquisitions are mostly helping the weaker entity, the growth of status in the market or will to introduce new products. M&A activity can be defined as a type of restructuring. The difference among a "merger" and an "acquisition" has become increasingly blunt in varied respects, particularly in notion of the final economical result, although it hasn’t completely disappeared in all situations. From a rightful point of view, "merger " is a legal unification of two and more entities into one entity, whereas an acquisition appears when one corporate takes over another and completely set up itself as the new owner, in that case the first corporate still exists as an uninfluenced legal entity controlled by the acquirer..
