Business combinations seek to unlock value within either firm that would otherwise not be realized if the firms continued separately.
Transactions can be mergers or acquisitions, made with cash or stock, and they can be friendly or hostile.
To prepare an appropriate bid for a target company, the buyer has to accurately value the target company through the due diligence process.
Many companies looking to expand, or streamline, their business will use investment banks for advice on potential targets and/or buyers.
M&A also includes the areas of value creation, corporate alliances, private equity, and divestitures.