Merger and Acquisition Strategies

The Business environment has been changed rapidly because of dynamic changes in the global atmosphere. The technological advances have altered the business transactions in current corporations to world level. Every organization has its vision to become a reputable organization; along with its vision to maximize market share and future growth. Hence the organizations have to be strong in order to grow in the market. They have also needed precise and specialized information to enter in new markets. Therefore, they have to adopt a distinctive type of strategy to compete in such a dynamic environment. The organizations use Merger and Acquisition (M&A) as an effective approach to cope with the dynamic business environment. This strategy continues to be a highly familiar form of corporate development. In the last decade, M&A has become an impressive activity. Mergers and Acquisitions (M&A) has redefined the corporate managerial environment, evidenced by the ever enhanced competitive edge of professional enterprises on today’s market. Merger and acquisition are global phenomena which many organizations employed to grow internally, by expanding its operations both globally and domestically. Merger is different from acquisition. Merger is the combination of two or more businesses that leads to the formation of a new business, but acquisition is the takeover or purchase of one business by other business.

This Monograph, Merger and Acquisition Strategies, sheds light on how synergies arise through mergers and acquisitions (M&A). Enterprises go through the process of Mergers and Acquisitions (M&A) with the goal of improving performance, increasing efficiency and obtaining business synergy. Merger and acquisition benefit shareholders when the consolidated post-merger firm is more valuable than the simple sum of the two separate pre-merger firms. Mergers and acquisitions are aimed at achieving cost efficiency through economies of scale, and to diversity and expand on the range of business activities for improved performance. Merger and acquisition is adopted to attain the operating and financial efficiencies. According to the efficiency theory, the main motive of mergers and acquisition is to gain operating and financial synergy. Theories behind M&A have supported the concept that the value of the combined companies may rise after coming together. Mergers and acquisitions improve market efficiency by capturing synergies between firms. But takeovers also impose externalities on the remaining firms in the industry.

This Book has the importance for the concerned institutions, customers, shareholders, investors, competitors and internal management. The objective of the text is to assess the changes in the financial performance of institution after M&A and give complete information to the organizations about the pros and cons of M&A in the recent competitive business environment.