Question

10. Mention some motivation and advantages for merger and acquisition. (minimum 5 items)

Answer 1

Mergers and acquisitions are used interchangeably, but they have a slight difference.

Merger happens between the same size of company, they come together are formed a single company, rather than remained separate to sustain and compete in the market.

On the other hand, In Acquisition, one company take over the another company.

Following are the motivation and advantages for mergers and acquisitions:

• It will save time and some to start the business from the beginning.
• Chances to explore a wider range of products/services.
• Better access to larger markets to compete with the rivalry.
• It leads to a strong building of financial power in the market.
• Expansion would be Cost saving.