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 Idaho, mergers and acquisitions (M&A) are governed by state statutes, particularly the Idaho Business Corporation Act for corporations, and other relevant laws for different types of business entities. An acquisition occurs when one company takes over another and clearly establishes itself as the new owner. This can be done through the purchase of stock, equity interests, or assets. Post-acquisition, the acquired company may remain independent or may be integrated into the purchasing company. A merger, in contrast, involves the combination of two companies into a new entity, with both companies often ceasing to exist in their previous forms. The process of M&A in Idaho requires adherence to legal procedures, including the approval of the transaction by the board of directors and shareholders of the companies involved, filing the necessary documents with the Idaho Secretary of State, and compliance with federal regulations such as antitrust laws enforced by the Federal Trade Commission and the Department of Justice. It is advisable for companies to consult with an attorney to navigate the complex legal landscape of M&A to ensure compliance with all applicable laws and regulations.