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 Delaware, mergers and acquisitions (M&A) are governed by the Delaware General Corporation Law (DGCL), particularly in chapters dealing with mergers, consolidations, and sales of assets. An acquisition in Delaware can occur through the purchase of stock, equity interests, or assets of a target company. The acquired company may continue to operate independently, or it may be fully integrated into the acquiring company. In a merger, two companies combine to form a new entity, with one company typically surviving and the other dissolving. Delaware law requires the board of directors of each corporation involved in a merger or acquisition to approve the plan of merger or acquisition, and in many cases, the shareholders must also approve the transaction. Delaware is a preferred jurisdiction for many corporations due to its well-developed body of corporate law and the expertise of the Delaware Court of Chancery in handling complex corporate disputes.