merger
The combining of two (or more than two) organizations that results in the creation of a new legal and economic entity. In contrast to an *acquisition, a merger generally implies a voluntary combination by both parties. Following a merger, a new organization emerges that tends to reflect the character of both premerger organizations, and the *stockholders of merging corporations tend to share on an equal footing the risks and rewards of the newly created entity. However, in practice, one party to a merger often dominates a merger arrangement. Most forms of *Generally Accepted Accounting Principles (GAAP) tend to strictly differentiate mergers from * acquisitions, and under most forms of GAAP the accounting treatment of mergers does not normally give rise to *goodwill. In many jurisdictions, large corporate mergers that concentrate market power and reduce *competition are frequently reviewed by regulatory authorities. Mergers have been common among large accounting firms in recent years. In 1998, for example, Coopers & Lybrand merged with Price Waterhouse to create a new firm, *PricewaterhouseCoopers. Further reading: Davison (2001); Selim et al. (2002)

Auditor's dictionary. 2014.

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  • merger — merg·er / mər jər/ n 1: the absorption of a lesser estate or interest into a greater one held by the same person compare confusion 2: the incorporation and superseding of one contract by another 3 a: the treatment (as by statute) of two offenses… …   Law dictionary

  • Merger — Mer ger, n. 1. One who, or that which, merges. [1913 Webster] 2. (Law) An absorption of one estate, or one contract, in another, or of a minor offense in a greater. [1913 Webster] 3. The combining of two groups into a unified single group under a …   The Collaborative International Dictionary of English

  • merger — [mɛʀʒe] n. m. ÉTYM. Attesté fin XVIIIe, Restif; var. bourguignonne de murgier (XIIIe), murger (1341), mirger (1672), formes de l un des dérivés dialectaux du lat. pop. muricarium « tas de pierres ». → Mur. ❖ ♦ Régional. Tas de pierres provenant… …   Encyclopédie Universelle

  • merger — (n.) 1728 in legal sense, extinguishment by absorption, from MERGE (Cf. merge) (v.), on analogy of French infinitives used as nouns (e.g. WAIVER (Cf. waiver)). From 1889 in the business sense; not common until c.1926. General meaning any act of… …   Etymology dictionary

  • merger — /ˈmɛrdʒer, ˈmYːdʒə(r)/ [vc. ingl., propr. «fusione»] s. f. inv. (econ., di aziende) fusione …   Sinonimi e Contrari. Terza edizione

  • merger — *consolidation, amalgamation …   New Dictionary of Synonyms

  • merger — [n] consolidation alliance, amalgamation, cahoots*, coadunation, coalition, combination, fusion, hookup, incorporation, lineup, melding, mergence, merging, organization, pool, takeover, tie in, tie up, unification, union; concepts 323,324,703 Ant …   New thesaurus

  • merger — ► NOUN ▪ a merging of two things, especially companies, into one …   English terms dictionary

  • merger — [mʉr′jər] n. a merging; specif., ☆ a) a combining of two or more companies, corporations, etc. into one, as by issuing stock of the controlling corporation to replace the greater part of that of the other or others b) the absorption of one estate …   English World dictionary

  • Merger — (1) Acquisition in which all assets and liabilities are absorbed by the buyer. (2) More generally, any combination of two companies. The New York Times Financial Glossary * * * merger merg‧er [ˈmɜːdʒə ǁ ˈmɜːrdʒər] noun [countable] FINANCE an… …   Financial and business terms

  • merger — (1) acquisition in which all assets and liabilities ( liability) are absorbed by the buyer. Bloomberg Financial Dictionary (2) More generally, any combination of two companies. The firm s activity in this respect is sometimes called M&A (Merger… …   Financial and business terms

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