Question

If one company wants to take over the other company, do you think it has to be the bigger one of the two that takes over the smaller one?

Answer 1

Depending on the situations it can be bigger company can takeover the small company or smaller company can takeover the bigger company.

The General view is that the Bigger company takes over the smaller one as it has more Financial capabilities, power to take over the company. Even Smaller Company likes to move to bigger company as they can work with more potential as both the companies have similar objective.

However we have seen in few instances where smaller one has took over the bigger one when Bigger is financial week, losing the customer base, Lack of experts, Brand image then Smaller take over the big one has it will them to increase their market share and reach .