Question

In your Judgement , what are the motivations for two M & A'S currently in the news?

Answer 1

Motivations for two M & A'S :-

1)Synergies :- overall performance efficiency tends to increase and across the board costs tend to drop, due to the fact that each company leverages off of the other company' s strengths.

2) Eliminate competition -It gain a larger market share and eliminate future competition.

3.Increase Supply - Chain pricing power - Buying out a supplier lets a company save on the margins the suppiler was previously adding to its costs.

4)Growth- Mergers can give the acquiring company an opportunity to grow market share without doing significant heavy lifting.