What Are Mergers and Acquisitions?

By Jeremy Bowman – Updated Feb 25, 2025 at 11:33 PM

Key Points

M&A deals are strategic business combinations or takeovers, often involving sizable transactions.
Risks in M&A include cultural clashes and leadership conflicts, which can undermine success.
Investors should critically assess M&A deals for potential risks and strategic fit before investing.

Mergers and acquisitions are more than just a payday for investment bankers. They're a key tactic for growth and capital allocation, especially among big businesses.

Sometimes known as M&A, mergers and acquisitions have been valued at $100 billion or more. They can be transformative or disastrous for businesses, depending on the deal.

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People sitting at a table and talking with one another in a boardroom. — Image source: Getty Images.

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About the Author

Jeremy Bowman has been a contributing Motley Fool stock market analyst, covering technology, consumer goods, and macroeconomic trends since 2011. Before The Motley Fool, Jeremy was a newspaper reporter, restaurant manager, and English teacher abroad. He holds a bachelor’s degree in English from Colorado College and a master’s degree in business administration from American University. One of his Motley Fool headlines was briefly featured on Late Night with Stephen Colbert.

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