9 Difference Between Merger And Acquisition

1. A merger occurs when two separate entities combine forces to create a new, joint organization. 
2. When one company takes over another and clearly established itself as the new owner, the purchase is called an acquisition.
3. Formation of a new company
MERGER:
Yes
Acquisition: 
No
4. Purpose
MERGER:
To decrease competition and increase operational efficiency.
Acquisition: 
For Instantaneous growth
5. Mergers tend to mean job losses.
6. Legal Formalities
Merger:
More
Acquisition:
Less
7. Example of Merger:
American Automaker, Chrysler Corp. merged with German Automaker, Daimler Benz to form DaimlerChrysler.
8. An example of a major acquisition is Manulife Financial Corporation's 2004 acquisition of John Hancock Financial Services Inc.
9. Size of Business
Merger:
Generally, the size of merging companies is more or less same.
Acquisition:
The size of the acquiring company will be more than the size of acquired company.