Reasons Behind Mergers & Acquisitions
Vishal Acharya, Consultant, India, Member
There are many different reasons for M&A:
1. Increasing market power
2. Removing entry barriers
3. Acquiring competence or know-how.
4. Acquiring new markets
5. Increase access to funds
6. Tax benefits
7. Avail benefits of differential costs and productivity
8. Backward or forward integration
9. Fight competition with third company
These are some of the reasons why company merge with another company.