Mergers and acquisitions (M&A) is the area of corporate finances, management and strategy dealing with purchasing and/or joining with other companies. As the companies involved are typically of similar size and stature, the term “merger of equals” is sometimes used.
Advantages of Mergers and Acquisition
- For helping a business firm makes its presence significant in a new market.
- Helps a business organization to avail some administrative benefits from another significant player in the market
- Helps a business firm in its process of introducing new products in the market along with its R&D and market analysis needs
- M&As also help a lot in increasing opportunity for employee benefits and satisfactions, however this may vary from a company to other.
- It helps in offering the best class products and services in the market for higher customer satisfaction and need fulfillment.
Importance of Mergers and Acquisition in Current Industry Trends
- Mergers and acquisitions have already taken a front seat in the current industry and this has led to Words Kshetra being recognized as a top class mergers and acquisition consulting service provider on a global scale.
- The corporate sector all over the world currently runs on a restructuring portfolio which needs an associative operation through different types of consolidation strategies like mergers and acquisitions.
- M&As have helped in facing the current challenges posed by the innovative pattern of industrial globalization.
- The need for high quality and global level products and services has also increased the number of cross-border mergers and acquisitions (M&As), sharply.
- Financial liberalization policies, the government policies and the other regional agreements needs and requirements have also been a major player in increased importance of M&As.