A merger or acquisition has financial, economical, organizational and legal aspects. A merger is a combination of two companies to form a new one (or a legal consolidation of two companies into one entity). An acquisition on the other hand, is a company takes over another company and completely establishes itself as the new owner (the “target company” still exists).

Letter of intent (“LOI”)
A “letter of intent” (letter of intent) is a widely used document in a merger or acquisition in which the parties both put their “intentions”. A letter of intent is not a required step in a takeover process, but can be of great value in some (most) situations.