Most of the time, the companies are not of equal size so what happens is that one company usually buys the small one and then merge their businesses. Hence mergers are often associated with acquisitions. Here both the parties try to come to a negotiation which is in the best interests of both parties and so that they can both make profits. The smaller company mainly benefits from such a deal maybe because its business was not doing that well or it might have been on the verge of bankruptcy. A management rejig takes place and the name of the company is also changed in a merger agreement.
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