Gaint companies often take over small enterprises. There are typically two scenarios that exist, while one company takes over another company. Either a larger company buy the entire (small) company or two companies merge together to form a new company.
Mergers and acquisitions both seem to be words for joining two or more companies that result in a shift in their company structure. They are intended to improve synergies within the enterprise to improve competence and productivity. However, in terms of initiation, method, and effect, there is a significant difference between merger and acquisition.