Mergers & Acquisitions

M&A refers to the strategic business activity in which two firms combine through a merger or an acquisition. We want to carry out the operations in order to accomplish certain business goals, such as growing market share, breaking into new markets, getting access to new technology, improving operational effectiveness, or realizing cost savings.

• Mergers:

A merger entails the joining of two or more businesses to create a new one. In a merger, the businesses involved often combine their operations, human resources, liabilities, and assets to form a single, bigger firm. Based on the connection between the merging firms, there are several distinct types of mergers that are frequently recognized:

– Horizontal Merger: The combination of two businesses that are engaged in the same industry and stage of the manufacturing process. To obtain economies of scale, boost market share, or lessen competition, this is frequently done.

   – Vertical Merger: A combination of two businesses that operate at separate levels of the supply chain, such as a manufacturer joining forces with a distributor or supplier. Vertical mergers are intended to enhance supply chain control and coordination.

   – A conglomerate merger: It occurs when two businesses from different industries combine to diversify their operations and lower risk. The goal of this kind of merger is frequently to increase the company’s portfolio.