The process of the buying and selling of corporate assets in order to achieve one or more strategic objectives (such as market growth, market share, production capacity, intellectual property, local market expertise, sales channels, etc). It represents an external source of expansion which companies resort to after assessing organic expansion possibilities (through Greenfield analysis). In so doing, companies compare the costs, risks, and benefits of a merger and acquisition (M&A) transaction with their organic (internal) potential.

An acquisition occurs when a company acquires all or part of the assets of another, where both parties do their best to facilitate the process. If the acquirer is doing so despite the resistance of the other party, it becomes a hostile takeover. A merger takes place when two companies (or more) combine into one entity.