Why Do Companies Engage in Mergers and Acquisitions?
Companies pursue M&A for several strategic reasons:
1. Growth: Combining businesses can lead to a larger market share and increased revenue. 2. Synergies: Companies can achieve synergies by merging, where combined operations become more efficient than the sum of individual parts. 3. Diversification: Acquiring or merging with a company in a different industry can help a business diversify its product lines. 4. Cost Savings: Economies of scale can reduce costs and increase profitability. 5. Access to New Markets: Acquisitions can provide immediate access to new geographical or customer markets.