Home | ARTS | Strategic Management | Merger Motives - Mergers and Acquisitions

Strategic Management - Strategy Formulation

Merger Motives - Mergers and Acquisitions

   Posted On :  26.06.2018 09:42 pm

Sellers opt for mergers and acquisitions to reduce taxes, to diversify, to restrict working capital financing, for technological synergies, when worthy successor is not there and due to the inability to cope with competition.

Merger Motives
 
Sellers opt for mergers and acquisitions to reduce taxes, to diversify, to restrict working capital financing, for technological synergies, when worthy successor is not there and due to the inability to cope with competition. Buyers go for mergers to acquire new product or capacities or permanent, or more synergy, to achieve economies of scale, when outside capital is available; there is more control of patents and tax advantages.
 
Organizations opt for merges with the following motives.
 
        Improving economies of scale
 
        Gaining managerial expertise
 
        Market supremacy
 
        Acquiring a new product or brand name
 
        Diversifying the Portfolio
 
        Reducing risk and borrowing costs
 
        Taxation or investment incentives 
Tags : Strategic Management - Strategy Formulation
Last 30 days 505 views

OTHER SUGEST TOPIC