Distinguish between merger and an acquisition (any three points).

Merger Acquisition A merger occurs when two separate entities combine forces to create a new joint organization in which both are equal partners. An acquisition refers to the purchase of one entity by another. Old company cease to exist and a new company emerges. A new company does not emerge. It requires two companies to consolidate into a new entity with a new ownership and management structure. It occurs when one company takes over all of the operational management decisions of another. A transaction legally structured as a merger may give each party's shareholders partial ownership and control of combined enterprise. A transaction legally structured as an acquisition may have the effect of placing one party's business under the indirect ownership of the other party's shareholders.