Motivations for mergers and acquisitions

Reasons for mergers and acquisitions

Mergers and acquisitions continue to shape local and international business landscapes. By definition, a merger involves two companies bringing together their respective businesses to become one. Acquisition, on the other hand, involves a takeover of another company either by purchasing a controlling interest or by purchasing its entire business operation and assets.

Why companies pursue mergers and acquisitions? Note that these two are recognised strategies aimed at driving business growth. There are several specific reasons why companies pursue mergers or acquisitions. This article paints a clearer picture of how mergers and acquisitions transpire in a real world setting, specifically by exploring the primary motivations for mergers and acquisitions through definitions and case studies.

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