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 New Jersey, mergers and acquisitions (M&A) are governed by both state statutes and federal law. Under New Jersey law, specifically the New Jersey Business Corporation Act, the process for mergers and acquisitions is outlined, including the requirements for approval by the board of directors and shareholders, filing necessary documents with the state, and adhering to any applicable fiduciary duties. An acquisition in New Jersey can take the form of a purchase of stock, equity interests, or assets of another company. Depending on the structure of the acquisition, 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, and this process also requires the approval of the board of directors and shareholders of each company involved, as well as compliance with state and federal regulations. Federal laws, including antitrust laws enforced by the Federal Trade Commission and the Department of Justice, also apply to M&A activities to prevent anti-competitive practices. It is important for companies engaging in M&A in New Jersey to consult with an attorney to ensure compliance with all relevant laws and regulations.