The term M & A means the economic processes that lead to the consolidation of business and capital. This happens at the micro and macro levels. M & A from the English language Mergers and Acquisitions, translated Mergers and Acquisitions. As a result of the transaction A new company. That is, m & a – approach to identifying mergers and acquisitions.

It is therefore logical to consider the two processes – Mergers and Acquisitions. Merger. It's all pretty self-explanatory. Combining two or more companies, which results in the new entity. Types of merger: 1) The merger forms – the company that made the merger, cease to exist as a legal entity. The new company taking over control of all assets and liabilities. 2) The merger of assets – such a union, which transmits the owners of companies in the authorized capital of all the rights over the companies. In this case, the contribution may act only the rights of control over the company.

Absorption. This is such a deal, which aims to establish control over the business entity. Implemented through the purchase of more than 30% of the share capital. But it is completely preserved judicial independence society. Let us consider the classification of basic types of mergers and acquisitions. Existing types, depending on the nature of integration: A) The merger is horizontal. Combining the two companies that offer products of the same species. Advantages: increased development, reducing competition. B) a vertical merger. Combining several companies, among which one – raw material supplier to another. Advantages: reducing production costs. Profit increases. B) Reorganization llc. Combining several companies that are involved in various business fields. Thus in the world is about 15000 transactions in m & a. The compound of companies – is one of many opportunities for investors to manage their capital personally. F) Circular integration. This is one way to invest their money literate funds.

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