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 Washington State, mergers and acquisitions (M&A) are governed by both state statutes and federal law. Under Washington law, specifically the Washington Business Corporation Act (WBCA), mergers and acquisitions are defined and regulated. An acquisition occurs when one company takes over another and may buy the stock, equity interests, or assets of the target company. 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 one company typically surviving and the other dissolving. Both processes require compliance with regulatory requirements, including approval by the shareholders of the companies involved, filing appropriate documents with the Washington Secretary of State, and sometimes meeting antitrust regulations under federal law. It is advisable for companies to consult with an attorney to navigate the complex legal landscape of M&A to ensure compliance with all applicable laws and regulations.