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 Montana, mergers and acquisitions (M&A) are governed by state statutes, particularly the Montana Business Corporation Act, as well as applicable federal laws. An acquisition occurs when one company takes over another, either by purchasing its stock, equity interests, or assets. Post-acquisition, the target company may continue to operate independently or may be integrated into the acquiring company. A merger, in contrast, is the fusion of two companies into a new entity, with both companies often ceasing to exist in their previous forms. The process of M&A in Montana requires adherence to specific legal procedures, including the approval of the board of directors and shareholders of the involved companies, filing appropriate documents with the Montana Secretary of State, and ensuring compliance with antitrust laws to prevent unlawful monopolies. It is advisable for companies to consult with an attorney to navigate the complex legal landscape of M&A, ensuring all regulatory requirements are met and the transaction is executed smoothly.