Capterra Glossary
Mergers and Acquisitions (M&A)
Mergers and acquisitions (M&A) is a process in which two companies join to create one larger company. The purpose of an M&A is usually financial gain or increased market share. However, there could be other reasons such as gaining access to new technology or talent that a smaller company did not have before merging with its larger counterpart.
What Small and Midsize Businesses Need to Know About Mergers and Acquisitions (M&A)
SMBs can reap many advantages by executing an M&A strategy. A key benefit is that they can grow faster than if they were to try and scale on their own. The partnering companies may have more resources, such as money and staff, which SMBs can use to expand their operations. In addition, M&A helps eliminate redundancies and improve overall productivity by allowing two individual businesses to merge their capabilities and build a more efficient larger business.
Related Terms
- Compound Annual Growth Rate (CAGR)
- Financial Planning and Analysis (FP&A)
- Selling General and Administrative (SG&A) Expenses
- Hedge Fund
- Gateway
- Record to Report (R2R)
- ROIT (Return on Information Technology)
- Chief Revenue Officer (CRO)
- SAC (Subscriber Acquisition Cost)
- ROE (Return on Equity)
- Tokenization
- Net Present Value
- Fintech
- Financial Management System (FMS)
- Business Capability Modeling