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 Vermont, mergers and acquisitions (M&A) are governed by state statutes, particularly under the Vermont Business Corporation Act, as well as applicable federal laws. An acquisition in Vermont occurs when one company takes over another, either by purchasing its stock, equity interests, or assets. The acquired company may continue to operate independently, or it may be fully integrated into the acquiring company. A merger, in contrast, involves the combination of two companies into a new entity. Both processes require compliance with regulatory requirements, including approval by the shareholders of the companies involved and filings with the Vermont Secretary of State. Additionally, depending on the size and nature of the transaction, federal antitrust laws enforced by the Federal Trade Commission (FTC) and the Department of Justice (DOJ) may require pre-merger notification and approval under the Hart-Scott-Rodino Antitrust Improvements Act. An attorney specializing in corporate law can provide guidance on the specific legal requirements and help navigate the complex legal landscape of M&A in Vermont.