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

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

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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.

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

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

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

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

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

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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.

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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.

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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.

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