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 couldnât 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.