A merger is the joining of two corporations or firms that usually take on the same name. The theory of merger and acquisition often brings together two businesses. In an acquisition, one company invests in or buys another company, and the bought company preserves its name and structure while being owned by a parent company. Mergers and acquisitions are among the most significant and cutting-edge financial transaction activities. They shift capital, integrate technology and resources, and can radically change a company's direction through restructuring, growth, and changing the competitive playing field. This effect on enterprises has an impact on many industries, marketplaces, and the economy as a whole. In general, a merger or acquisition increases the value of both organizations and consolidates their assets under one roof if done properly. Mergers and acquisitions add value in a variety of ways. Consolidation results in an increase in market share. Businesses are worth more than the sum of their components. Companies merge and acquire to exchange technology, information, and resources. By conquering problems, combining strengths, and adjusting for weaknesses, enterprises are strengthened. This provides businesses with a competitive advantage as well as the possibility to enhance productivity while decreasing costs.