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Corporate mergers occur when two companies combine. ... There are many motivations for mergers. ... Other mergers seek to make cost-savings by integrating operations, sometimes on a world scale. And some mergers are defensive, responding to other mergers, which threaten the competitive position of a company. For any reason, agreed or hostile mergers have a big impact on both merging companies.
Merging from a corporate executives perspective is a great thing. ...
A stock market boom makes mergers much more attractive because it is relatively cheap to acquire other companies by paying for them in (high valued) shares. ... Some industries are forced into mergers by specific troubles facing that industry. ... Mergers can fail because the two partners cannot agree terms - for example, which will run the new company. Mergers can also run into regulatory problems. ...
Finally, mergers may not produce the kind of benefits promised. ... Some academic studies have suggested that whatever the immediate benefit to shareholders, mergers rarely give much added value to the economy as a whole.
Approximate Word count = 830
Approximate Pages = 3.3
(250 words per page double spaced)
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