Strategic objectives of Acquisition and Merger Strategies

What are the strategic objectives of Acquisition and Merger Strategies?

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Many acquisitions and mergers are driven by strategies to get one of five strategic objectives:

a. To pave the method for the acquiring company to add more market share and make a more well-organized operation out of the joint companies by closing high-cost plants and eliminating extra capacity industry wide.

b. To enlarge a company’s geographic coverage.

c. To enlarge the company’s business into new product categories or international markets.

d. To increase fast access to new technologies and avoid the requirement for a time-consuming and lengthy R&D effort.

e. To try to create a new industry and direct the junction of industries that boundaries are being blurred by new market opportunities and varying technologies.

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