Question

If mergers and acquisitions quite often end up providing a competitive disadvantage, why do so many of them take place?

Answer 1

Question 1) If mergers and acquisitions quite often end up providing a competitive disadvantage, why do so many of them take place?

Answer 1) Merger and acquisition are said to be when 2 or more companies come together and indulge in a one big company. Companies do this either to take competitive advantage over the competitors or to gain market share or any other marketing strategy. In other words Mergers and acquisitions are exchanges in which the responsibility for, different business associations or their working units are moved or solidified with different entities. Mergers and acquisitions (M&A) are characterized as union of organizations. Separating the two terms, Mergers is the mix of two organizations to shape one, while Acquisitions is one organization taken over by the other.

Benefits of mergers and acquisitions:

1) Additional opportunities offered by another market

2) Acquiring simpler access to a gifted work power

3) You can expand your portfolio

4) Purchasing or converging with another organization is generally less expensive

5) Better access to a bigger market

6) Economies of scale – greater firms increasingly productive

7) Drawbacks of mergers

8) System Economies

9) Innovative work

10) Different economies of scale

11) Keep away from duplication

12) Guideline of Monopoly

13) Keep unfruitful business from going belly up