M&A is the common abbreviated form for Mergers & Acquisitions. This abbreviation is used extensively throughout the Merger Arbitrage Limited website. Although the two terms are often used interchangedly, there are specific differences. For a more in depth explanation of the concept please see our article The Differences Between Mergers and Acquisitions – Examples & Explanations. However, M&A, is often used as a term to relate to the concept or industry as a whole. Additional terms which may be covered by this terminolgy can be “Buyout”, “Deal” or “Takeover”.
The actual action of Mergers and acquisitions are the transactions in which ownership of the target company, or other business organizations, or even operating units are transferred & consolidated with other entities or purchased by the acquiring firm. Corporate strategy is entwined with mergers and acquisitions strategy and a great deal of media and academic attention is devoted to it. Vertical integration, horizontal integration, conglomerates are all strategies that an expansion minded firm may pursue.
For further background on the evolution on the business of M&A see our reading list. We like M&A Titans: The Pioneers Who Shaped Wall Street’s Mergers and Acquisitions Industry by Brett Cole and especially Deals of the Century: Wall Street, Mergers, and the Making of Modern America by Charles R. Geisst. Also, see our Mergers & Acquisitions glossary entry for more information.
M&A Examples
Merger Arbitrage Limited provides numerous examples of mergers and acquisitions. Beginning with our merger arbitrage spread list. This is a list of arbitrage spreads based on publicly traded targets involved in a merger or takeover. There are also extensive news reports of M&A news happening around the globe. Visit out M&A news feed for the latest news and stories or stop by our Cision Press Release page for the latest announcements.
However, it is important to not that a rise in corporate activity does always correlate with the profitability of merger arbitrage. Investing in this type of strategy requires the trader to take on the risk of the deal not consummating as expected. It is the act of investing in and exploiting profitable opportunities in the market that can make merger arbitrage investing attractive. The actual deal itself, its relevance to the wider market and its subsequent success are of little concern to the trader. These factors come into play only when, or if resistance to the deal in terms of corporate strategy may effect the outcome of the deal.
