How does a Merger work?
Mergers usually take place when two similar companies (either in what business they do or similar in sheer size) choose to combine their businesses together. A merger only occurs when both businesses (management, owners and stockholders, if present) agree upon the combination. A merger can best be viewed as a friendly transaction for mutual gain. Throughout the process each business has complete liberty to discuss and examine the other business in order to protect each business from any foul play or deception in which one of the businesses might pose a critical threat to the others fiscal survival. When both sides agree to a structured deal, via the talks of each businesss management and/or ownership, a plan is usually put into place to define the goals and budgetary contemplations for the future.
