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 North Carolina, mergers and acquisitions (M&A) are governed by state statutes, particularly the North Carolina General Statutes (NCGS), as well as federal law where applicable. An acquisition in NC involves one company taking over another, which can be through the purchase of stock, equity interests, or assets. Post-acquisition, the target company may continue to operate independently or may be integrated into the acquiring company. Mergers, conversely, typically result in the creation of a new entity, with both original companies combining their operations, assets, and liabilities. The process is regulated under NCGS Chapter 55, the North Carolina Business Corporation Act, which outlines the legal requirements for M&A activities, including approval by the board of directors and shareholders, filing appropriate documents with the Secretary of State, and adhering to any relevant federal regulations. It is important for companies to consult with an attorney to ensure compliance with all legal procedures and to address any antitrust concerns that may arise under federal law.