Merger

In a merger, two companies agree to go forward as a single new company rather than remain separately owned and operated. This process usually involves significant legal and financial considerations and is aimed at enhancing competitive advantages, or increasing market share and influence. Mergers can be horizontal (between competitors), vertical (between supplier and company), or conglomerate (between companies in unrelated businesses). They are strategic moves that are supposed to create synergy that makes the value of the combined entities greater than the sum of the two parts.