Mergers and acquisitions

The aspect of [business strategy]? and management dealing with the merging and/or acquiring of different companies. Usually these are done in a friendly setting where officiers in each company involved come together to go through a due diligence process to ensure a successful marriage between all the parties involved. In other occasions, acquisitions can be done by hostile takeover via absorbing the majority of outstanding shares in the open stock market. Depending on business laws in each states, some companies have limited protections against hostile takeover. See Delaware corporations.

The deal can be paid for in two ways. A stock swap involves in issuing stock to exchange for the shares of the company. A cash deal involves buying the company with cash. In some cases, company acquires another company by issuing [junk bond]?s to raise funds.