The Role of Mergers and Acquisitions in Business

Mergers and acquisitions (M&A) can be split into two types: friendly, and strange (Ramsey, 1987, p. xv). A friendly M&A brings together two companies who want to join resources. Such unions gravel about as companies seek to enter new markets, as one company who is having bad times seeks an infusion of spare resources from another, or as a company signaled for a head-on takeover moves to find a friendlier partner in guild to forestall the takeover. In a friendly M&A action, the resulting two companies will continue their operations. In some cases, the operations will be combined in some bearing; in other cases, the operations will continue to be operated separately.

Hostile takeovers are what garnered the nation's attention in the 1980s as executives such as T.

Boone Pickens and Carl Icahn moved to acquire companies, then sell off significant portions of the organization. The result was a large influx of cash for the acquiring company, but the wholesale destruction of the target organization. The primary difference between a friendly M&A action and a hostile one is that hostile takeovers typically result in the destruction of the current operation, and for sure the current management, of t

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