Glossary
Merger vs. Acquisition
The distinction between combining as equals and one company buying another.
Definition
A merger is the combination of two companies into a new combined entity, typically framed as a partnership of relative equals; an acquisition is one company purchasing and absorbing another. The distinction shapes governance, branding, integration approach, and how each side's culture and leadership are treated.
Context
In practice, true mergers of equals are rare; most 'mergers' are acquisitions in structure if not in language. The framing matters for integration: how leadership, culture, and brand are handled signals to employees and customers what kind of combination this really is, which in turn shapes whether synergy is realized.