M&A (Mergers and Acquisitions) is a term that refers to the combination of two businesses, with the goal of stimulating growth, obtaining competitive advantages, influencing value chains where the businesses are inserted or increasing market share.
This modality occurs in three models:
The first being the merger of companies, which is nothing more than the joining of two companies, where one of them ceases to exist after being absorbed by the other;
The second model, acquisition, is when a company obtains a majority stake in another corporation, which retains its name and legal structure;
And the third model, consolidation, results in the creation of a new company, where both shareholders approve the consolidation and receive shares in the new entity.