What are the differences between a merger and an acquisition?

Mergers and acquisitions involve two businesses joining together. The differences between them involve how the two businesses come together and the implications for each. A merger is an agreement between two companies to combine resources in order to form a new company. This is typically done by one company purchasing the assets and liabilities of another. This means that the two companies will cease to exist as separate entities and instead become one company, owned by both parties. The assets and liabilities of the companies will be combined, and the resulting company will be a new entity. On the other hand, an acquisition involves one company buying out another. The purchasing company will gain full control of the assets and liabilities of the target company, and the target company ceases to exist. In an acquisition, the purchasing company typically takes over the employees, customers, and intellectual property of the target company, giving the purchasing company a larger market share. In Florida, mergers and acquisitions must comply with state securities laws, and each transaction must be approved by the Florida Department of Financial Services. Companies must also submit detailed plans of their strategies to the department before any transaction can be approved. This ensures that companies are acting with the best interests of the public and their shareholders in mind.

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