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 Mississippi, mergers and acquisitions (M&A) are governed by state statutes, particularly the Mississippi Business Corporation Act, as well as applicable federal laws. An acquisition occurs when one company, the acquirer, purchases the stock, equity interests, or assets of another company. Post-acquisition, the acquired company may continue to operate independently or may be integrated into the acquiring company. Mergers, in contrast, involve the combination of two companies to form a new entity. The process is regulated to ensure compliance with antitrust laws, protect shareholder interests, and address tax implications. Companies must adhere to reporting and disclosure requirements, and in some cases, obtain approval from regulatory bodies. It is advisable for companies to consult with an attorney to navigate the complex legal landscape of M&A transactions in Mississippi.