Mergers and Acquisitions: A Survival Strategy in Global Markets

In recent times, global competition and the drive to leverage advantage, has resulted in both small and larger companies combining resources. Consolidations of markets are one of the main reasons for Mergers and Acquisitions. Corporate organizations possessing similar products and services are looking to both consolidate and expand; thereby utilizing joint interests to further their goals.

Although mergers and acquisitions are motivated by different requirements, the end result is to increase the organization’s size and capacity for growth. The main objective of every organization is to get maximum profit every year to increase the wealth of shareholders by giving them high dividends. Every organization adopts different techniques and tools to maximize its profit in order to survive in the fast growing market. The smaller or less profit-oriented organizations are left with no option than to quit from the market or else merge with or acquired by firms of good financial standing. Mergers and Acquisitions are options for small or less profit-making organisations to survive in the emerging market. In theory, mergers and acquisitions

The core objective in this period was to enter businesses into the deal of mergers and acquisitions that want to enjoy oligopoly and not monopoly. The Hi-tech expansion as the progress of railroads and transportation, took place in the said time period. This M&A wave was horizontal or a conglomerate (Golubov & Petmezas, 2013). Firms and organizations that have entered into the deal of M&A were the key producers of Ore and mineral, food items, oil & fuel, transport and chemical etc. Banks played a serious role in assisting the deals of M&A. Banks like Investment banks granted loans to the investors on easy instalments. The second wave mergers ended with the stock market crash in 1929 and the great depression. The tax relief provided inspired mergers in the