Merger and Acquisition for Strategic Business Growth
Mergers and Acquisitions (M&A) activity is defined as the “aspect of corporate strategy, finance and management dealing with the buying, selling and combining of different companies that can aid, finance, or help a growing company in a given industry grow without having to create another business entity”. This definition highlights two factors about M&A activity which are :
- M&A is a strategic tool used to accelerate growth in market share or product volume.
- M&A involves the amalgamation of two or more firms to form one entity leading to two previously autonomous firms operating as a single unit.
M&A can destroy shareholder value as evidenced by failure of most M&A activity in achieving merger objectives.
