Reasons for Mergers and Acquisitions?

      
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			              Acquisition Integration > Best Practices > Reasons for Mergers and Acquisitions?
			            
			            	Reasons for Mergers and Acquisitions?
Pankaj Patel, student, United Kingdom
			            
	          		Please help me understand why any company would want to merge with some another company. What are the typical main reasons behind mergers and acquisitions? (...) Read more? Sign up for free

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			                  	Reasons Behind Mergers & Acquisitions

			                  	Vishal Acharya, Consultant, India
												
													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.
				                
			                  	More Reasons Behind Mergers or Acquisitions

			                  	jennfergrey, United Kingdom
												
													I want to add a few more points:

Synergy: The idea that by sharing resources or costs, performance might increase and/or costs might decrease.
Diversification, selling more products or services in more markets.
Buying Power: Increased bargaining power as a combined buyer towards suppliers.
Selling Power: Increased bargaining power as a combined supplier towards buyers.
Eliminating Competition: Buying a competitor will also make it harder to enter the market for new entrants, because of increased required economies of scale.

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