Question

What are four reasons mergers and acquisitions occur?

Answer 1

Main four reason for hte Mergers & Acquisitions are as below,

1. Growth: When the M & A is happen between two companies or firm than resources of the both orgainization will become together. by using the resources of each other orgainization business become easy and lot of the possibilities for the growth in business.
2. Elimiating Competittion: Many time for eliminatinf the market competittion the mergr and acquisition is happen. After merger and acquisition organization have the more customer and less competitor.
3. Synergy : After merger and acquisition the perfomance of the organization will increase and cost also reduces and this is happen becuase in merger and acquisittion the srtrengths of the both the companies will came together and ewakeneses are eliminated.
4. Better Supply Chain Management: By using the resources of each other otrganization do betther there supply chain management.