Question

Subject Merger and Acquisition

Discuss the 10 forces driving cross border merger?

Answer 1

Followings are the 10 forces driving cross border merger;

1. For making proper access to global capital market or making proper presence in the global financial market normally firms involve in cross border mergers.

2. For finding out new opportunities in the global markets firms also involve in the cross border merger.

3. For making sustainable entry into global market and facing international competition smoothly firms go for cross border mergers.

4. For making better geographical diversification which ultimately results into exploration of global natural resources.

5. For improving efficiency of the firms & companies because at large level of operations firms & companies will enjoy economy of scale.

6. For catering unfulfilled demands throughout the worlds.

7. For achieving synergies at local & global level.

8. For getting benefits of minimization of risks through diversification & dividing risks.

9. For improving share of the firm & company in the market.

10. Expansion also a major factor for cross border mergers because a nation or a local merket only provides limited opportunities hence through cross border mergers there will be a lot of expansion opportunities for the firms & companies.