Editing Mergers and acquisitions (section)

==Different types==

===By functional roles in market===
The M&A process itself is a multifaceted which depends upon the type of merging companies.
*A horizontal merger is usually between two companies in the same business sector. An example of horizontal merger would be if a video game publisher purchases another video game publisher, for instance, [[Square Enix]] acquiring [[Eidos Interactive]].<ref>{{cite web|url=http://www.hd.square-enix.com/eng/pdf/news/20090212_02en.pdf |title=RECOMMENDED CASH OFFER FOR EIDOS PLC BY SQEX LTD. TO BE EFFECTED BY MEANS OF A SCHEME OF ARRANGEMENT UNDER THE UK COMPANIES ACT 2006|publisher=Square Enix|date=12 February 2009|access-date=16 February 2018|archive-url=https://web.archive.org/web/20150323124837/http://www.hd.square-enix.com/eng/pdf/news/20090212_02en.pdf|archive-date=23 March 2015|url-status=dead}}</ref> This means that synergy can be obtained through many forms such as; increased market share, cost savings and exploring new market opportunities.
*A vertical merger represents the buying of supplier of a business. In a similar example, if a video game publisher purchases a video game development company in order to retain the development studio's intellectual properties, for instance, [[Kadokawa Corporation]] acquiring [[FromSoftware]].<ref>{{Cite news|url=https://www.engadget.com/2014/04/28/from-software-acquired-by-japanese-publisher-kadokawa-games/|title=From Software acquired by Japanese publisher Kadokawa Corporation|work=Engadget|access-date=2017-12-10|language=en-US}}</ref> The vertical buying is aimed at reducing overhead cost of operations and economy of scale.
*Conglomerate M&A is the third form of M&A process which deals the merger between two irrelevant companies. The relevant example of conglomerate M&A would be if a video game publisher purchases an animation studio, for instance, when [[Sega Sammy Holdings]] subsidized [[TMS Entertainment]].<ref>{{cite web|url=http://www.tms-e.co.jp/english/pdf/100827kogaisya.pdf |title=Notice Concerning Exchange of Shares to Convert Sammy NetWorks Co., Ltd., SEGA TOYS CO., LTD. and TMS ENTERTAINMENT, LTD. into Wholly Owned Subsidiaries of SEGA SAMMY HOLDINGS INC|publisher=Sega Sammy Holdings Inc.|date=27 August 2010|access-date=9 January 2017|archive-url=https://web.archive.org/web/20131012034838/http://www.tms-e.co.jp/english/pdf/100827kogaisya.pdf|archive-date=12 October 2013|url-status=dead}}</ref> The objective is often diversification of goods and services and capital investment.

===By business outcome===
The M&A process results in the restructuring of a business's purpose, corporate governance and brand identity.
*A statutory merger is a merger in which the acquiring company survives and the target company dissolves. The purpose of this merger is to transfer the assets and capital of the target company into the acquiring company without having to maintain the target company as a subsidiary.<ref name="shsu">{{Cite web|url=http://www.shsu.edu/klett/MERGER%20ch%2036%20new.htm|title=Merger & consolidation: overview|website=Sam Houston State University |access-date=2017-12-10 |url-status=dead |archive-url= https://web.archive.org/web/20171229112515/http://www.shsu.edu/klett/MERGER%20ch%2036%20new.htm |archive-date= Dec 29, 2017 }}</ref>
*A consolidated merger is a merger in which an entirely new legal company is formed through combining the acquiring and target company. The purpose of this merger is to create a new legal entity with the capital and assets of the merged acquirer and target company. Both the acquiring  and target company are dissolved in the process.<ref name="shsu" />

===Arm's length mergers===
An arm's length merger is a merger: 
# approved by disinterested directors and 
# approved by disinterested stockholders:
″The two elements are complementary and not substitutes. The first element is important because the directors have the capability to act as effective and active bargaining agents, which disaggregated stockholders do not. But, because bargaining agents are not always effective or faithful, the second element is critical, because it gives the minority stockholders the opportunity to reject their agents' work. Therefore, when a merger with a controlling stockholder was: 1) negotiated and approved by a special committee of independent directors; and 2) conditioned on an affirmative vote of a majority of the minority stockholders, the business judgment standard of review should presumptively apply, and any plaintiff ought to have to plead particularized facts that, if true, support an inference that, despite the facially fair process, the merger was tainted because of fiduciary wrongdoing.″<ref>In re Cox Communications, Inc. Shareholders Litig., 879 A.2d 604, 606 (Del. Ch. 2005).</ref>

===Strategic mergers===
A Strategic merger usually refers to long-term strategic holding of target (Acquired) firm. This type of M&A process aims at creating synergies in the long run by increased market share, broad customer base, and corporate strength of business. A strategic acquirer may also be willing to pay a premium offer to target firm in the outlook of the synergy value created after M&A process.

=== Acqui-hire ===
The term "acqui-hire" is used to refer to acquisitions where the acquiring company seeks to obtain the target company's talent, rather than their products (which are often discontinued as part of the acquisition so the team can focus on projects for their new employer). In recent years, these types of acquisitions have become common in the technology industry, where major web companies such as [[Facebook]], [[Twitter]], and [[Yahoo!]] have frequently used [[recruitment|talent acquisitions]] to add expertise in particular areas to their workforces.<ref name=forbes-attentionstartups>{{cite web|last=Hof|first=Robert|title=Attention Startups: Here's How To Get Acqui-Hired By Google, Yahoo Or Twitter|url=https://www.forbes.com/sites/roberthof/2013/12/04/attention-startups-heres-how-to-get-acqui-hired-by-google-yahoo-or-twitter/|work=Forbes|access-date=9 January 2014}}</ref><ref name=wsj-acquihire>{{cite news |author=Sarah E. Needleman |date=September 12, 2012 |title=Start-Ups Get Snapped Up for Their Talent |url=https://www.wsj.com/articles/SB10000872396390443696604577645972909149812 |url-access=subscription |newspaper=Wall Street Journal}}</ref>

=== Merger of equals ===
Merger of equals is often a combination of companies of a similar size. Since 1990, there have been more than 625 M&A transactions announced as mergers of equals with a total value of US$2,164.4 bil.<ref name="imaa">{{Cite news|url=https://imaa-institute.org/m-and-a-statistics-transaction-type/|title=M&A by Transaction Type|work=IMAA-Institute|language=en-US|access-date=2016-12-22}}</ref> Some of the largest mergers of equals took place during the [[dot-com bubble]] of the late 1990s and in the year 2000: [[AOL]] and Time Warner (US$164 bil.), [[GlaxoSmithKline|SmithKline Beecham]] and Glaxo Wellcome (US$75 bil.), Citicorp and Travelers Group (US$72 bil.). More recent examples this type of combinations are DuPont and Dow Chemical (US$62 bil.) and Praxair and Linde (US$35 bil.).