Mergers and acquisitions (M&A) is the catch-all term used to refer to the different forms for transferring or consolidating ownership of businesses and assets. Although the terms merger and acquisition are used interchangeably, they have different legal meanings. When one company (the acquirer) purchases the stock, equity interests, or assets of another company, the transaction is called an acquisition. Sometimes an acquired company continues to operate independent of the acquirer, and sometimes the acquired company ceases to operate independently and is absorbed by the acquirer. Mergers, on the other hand, are generally the combination of two companies, and result in the formation of a new company.

In Arkansas, mergers and acquisitions (M&A) are governed by state statutes, particularly the Arkansas Business Corporation Act, as well as federal law when applicable. An acquisition occurs when one company takes over another, and the acquired company may continue to operate independently or may be absorbed. The specifics of how an acquisition is handled legally depend on the structure of the deal, such as whether it involves the purchase of stock, equity interests, or assets. Mergers, in contrast, involve the combination of two companies into a new entity. Both processes require adherence to legal formalities, including approval by the boards of directors and shareholders of the involved companies, filing the necessary documents with the Arkansas Secretary of State, and compliance with antitrust laws to prevent anti-competitive practices. It is often advisable for companies to consult with an attorney to navigate the complex legal landscape of M&A to ensure compliance with all relevant laws and regulations.