Sometimes two organizations become one. A merger is the combination of two companies into a single entity, typically through mutual agreement and an exchange of equity or other consideration.

Mergers aim for scale, complementary capabilities, geographic expansion, or elimination of rivalry. Legal form, accounting treatment, and regulatory review vary by jurisdiction and deal size. Cultural integration and system consolidation often prove harder than the financial modeling suggested.

Many mergers destroy value for the acquirer’s shareholders. Success correlates with clear strategic logic, realistic synergy estimates, disciplined pricing, and deliberate integration management. Boards that treat mergers as occasional, high-stakes projects rather than routine growth tools make fewer costly mistakes.

• Combination of two companies into one
• Usually negotiated and equity-based
• Driven by scale, capability, or market motives
• Value depends on integration and realistic assumptions