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M&A

(Mergers & Acquisitions)

M&A (Mergers & Acquisitions) refers to the consolidation of companies through various financial transactions, including mergers, acquisitions, consolidations, tender offers, and asset purchases.

Major types include horizontal (competitors, e.g., Disney-Fox), vertical (supply chain, e.g., Amazon-Whole Foods), and conglomerate (unrelated businesses). Valuation methods like
DCF and comparable P/E ratios determine deal prices. The SEC oversees public M&A for shareholder fairness, while FTC reviews antitrust concerns (blocked Lockheed-Aerojet in 2022). LBOs (e.g., Twitter's $44B buyout) are aggressive M&A forms. Global M&A volume hit $3.6T in 2022 before slowing amid FED rate hikes.
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