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A merger combines companies into one entity, often of similar size and market focus. It accelerates growth and expansion, leveraging the strengths of each involved company. This differs from a hostile takeover, which happens without consent and often involves manipulative tactics. Growing organically in a new market from scratch is time-consuming and risky, involving understanding local dynamics and potential costly mistakes. Merging streamlines the process, as the groundwork is already laid, and the company is operational with signs of success. This strategy allows companies to expand into new areas or products with benefits like cost savings, access to a new customer base, and reduced expenses.

Enterprise Valuation (EV) is a metric gauging a company's total value, vital for investors and analysts. It surpasses other valuation methods, offering a comprehensive view. EV factors in debt, equity, and cash market values, yielding a singular valuation figure. This metric is pivotal in corporate valuations and underpins M&A transactions, providing a holistic assessment of a company's financial health.