M&A Valuation

A company merger is when two companies combine to form a new company. Companies merge to expand their market share, diversify products, reduce risk and competition and increase profits.

A de-merger is when a company splits off one or more divisions to operate independently or be sold off. A de-merger may take place for several reasons, including focusing on a company's core operations and spinning off less relevant business units, to raise capital, or to discourage a hostile takeover.