What is the difference between a private and public merger or acquisition?

When two companies combine, the process is called a merger or acquisition. Mergers and acquisitions (M&A) can be either public or private. A public M&A involves one or more publicly-traded companies. These companies are listed on a stock exchange and must follow state and federal laws. They must also disclose information about the merger to shareholders and the public. Public M&As also have to be approved by shareholders and regulatory bodies. A private M&A involves two or more privately-held companies. Unlike public companies, private companies can merge or acquire without having to answer to a wide variety of shareholders. Because of this, private M&As can move much faster and are usually simpler than public ones. Private companies are also able to keep details of the merger or acquisition confidential. In Oregon, the rules for both public and private M&As involve notifying the Secretary of State of the merger or acquisition. Both types of M&As are also subject to federal antitrust laws. In addition, depending on the size of the transactions, public companies may be subject to specific state or federal regulations.

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What is the difference between a private and public merger or acquisition?

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