Merger and acquisition activity (mergers, acquisitions, joint ventures, divestitures) is at an all-time high. M&A volumes are now higher than during the internet boom of 1999- 2001 and the M&A boom of 2004 – 2007 that was fueled by cheap credit.

For beginners, mergers and acquisitions (M&A) is a process where two companies come together to become one company, or where one company buys another company. Here's an example:

Imagine there are two ice cream shops in town, and one of them is called "Scoops" and the other is called "Twirls." If the owners of Scoops and Twirls decide they want to merge their businesses and become one company, they can do that through a process called a merger. After the merger, the two ice cream shops will become one company called "Scoops & Twirls," and they will sell ice cream together under that name.

Now, let's say that instead of merging, the owner of Scoops decides they want to buy Twirls. In this case, the process is called an acquisition. The owner of Scoops would pay money to the owner of Twirls to buy their ice cream shop, and Twirls would become a part of the Scoops company.

There is a special formula that the top Corporate Development groups in the world take in order to run a continuous strategic approach to buy and sell companies that would be accretive (meaning it would help increase the value and revenue/profitability of the company).

Mergers and acquisitions can result in new organizations whose financial and strategic options are much improved. They are driven by globalization, a long-term market, various barriers to growth, which make M&As a valuable tool by which companies can quickly attempt to increase revenue. 

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