Merger vs Acquisition vs Consolidation: What Is the Difference?
The legal mechanics behind deal headlines: who survives, how shares are exchanged, why most public deals are reverse triangular mergers, and what happens to the name and ticker.
Category: Mergers & Acquisitions
Who is buying whom, for how much per share, what the premium is, which approvals are needed and when the deal is expected to close.
Breakup Fees, Go-Shops and Other Merger Terms in Plain English
The deal-protection section of a merger agreement decides who pays whom if the deal dies. Termination fees, reverse fees, go-shops, fiduciary outs and outside dates, with real numbers.
What Happens to Your Bank Account When Banks Merge or a Bank Fails
A bank merger moves your accounts to a new owner on a set date; a failure brings in the FDIC. Account numbers, cards, CDs and insurance limits in both cases.
How Cash, Stock and Mixed Mergers Are Taxed for Shareholders
How a merger is paid for decides when shareholders owe tax. The basics of taxable cash deals, tax-free reorganizations, cash boot and basis carryover, from IRS sources.
Why a Stock Trades Below the Announced Deal Price
The gap between the market price and the deal price is called the spread. It reflects time to closing and the risk that regulators, financing or a vote stop the deal.
What Happens to Employees When Their Company Is Acquired
Your job, salary, paid time off, benefits and seniority after an acquisition depend on how the deal is structured and on the employee matters section of the merger agreement.
What Is a Take-Private Deal? How Buyouts Work for Shareholders
A take-private turns a listed company into a privately owned one, usually with borrowed money. What shareholders, employees and customers should expect, using Electronic Arts and Walgreens as examples.
How Long Does a Merger Take From Announcement to Closing
The timetable depends on antitrust review, the shareholder approval route and foreign regulators. This step table shows how long each stage takes and why deals slip.