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Home Definitions

What is a Merger? Definition or Meaning

Posted by Bizversity

A merger is a deal between two entities to form one, usually with shareholders’ approval. After the merger, the acquired company ceases to exist and becomes a part of its acquiring company. A bit like when kings fought over kingdoms and took them over after winning the battle, but without the bloodshed.

For example…

At the beginning of every year, Pets Rule, creates a business plan that includes a cash flow budget. This is done so that the owners are aware of what bills and repayments or cash outflows need to be met at specified times of the twelve month period. It also forecasts the inflows including predicted sales revenue, approved grant payments and other known cash inflows over that time. This helps Pets Rule have an idea of their cash flow situation at all times during the year.

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