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In the simplest of terms, a merger is the combining of two companies. Of course, there will be rules, laws as well as a long list of contracts to cover all of the basics and then some. The acquisition is different because in this case the companies will become one, but one is buying the other. It is not a combined effort to rule together so to speak but one company out right purchasing the other. That is the most basic of understanding for what mergers and acquisitions are.
They are important for a number of reasons. For example, you may be part of one of those mergers and or acquisitions. In that case, you'll want to know what is happening to you and your job. But, if you are not part to fit, you still need some information about how it all happens to affect your business. If two companies that make paper merge, and you make paper as well, will they have a larger share out there now and will that mean more dollars to spend on marketing? As you can see, this will affect your business quickly.