mergers and acquisitions (m&a)

Why Do Companies Engage in M&A?

Companies pursue M&A for several reasons. Some of the primary motivations include:
Growth: M&A can help companies quickly increase their size and market share.
Synergy: The combined company can often achieve cost savings and enhanced revenue opportunities that they couldn’t achieve independently.
Diversification: Companies might acquire other companies to diversify their product lines, services, and markets.
Strategic Realignment: Companies might use M&A to reposition themselves within their industry and adapt to changing market conditions.
Elimination of Competition: Acquiring a competitor can reduce competition and increase market power.

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