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Target refers to the firm that is being acquired- the seller.

An acquisition is when the purchasing company acquires more than 50% of the shares of the acquired company and both companies survive.

Amalgamation refers to the joining of one or more companies into a new entity. None of the combining companies remains; a completely new legal entity is formed.

An asset deal is when an acquirer purchases only the assets of the target company (not its shares).

Economies of Scale refers to the phenomenon when fixed costs decrease because merged companies can eliminate departments with repetitive functions.

A gain of more specialized skills or technology due to a merger refers to economies of scope

Dilution refers to the worsening of per share metrics post-transaction (after issuing additional shares).

Cash consideration refers to the portion of the purchase price given to the target in the form of cash.

Bootstrap Effect or Bootstrap Earnings Effect refers to the short-term boost in the earnings of the acquirer company when it merges with the target company even though there is no economic benefit from such combination.

Backward integraton is when a company acquires a target that produces the raw material or the ancillaries which are used by the acquirer. It intends to ensure an uninterrupted supply of high-quality raw materials at a fair price.

Forward integration is when a company acquires a target that either makes use of its products to manufacture finished goods or is a retail outlet for its products.

Horizontal Integration refers to the merging of companies in the same lines of business, usually to achieve synergies.