Mergers acquisitions blog is a place to find out about the benefits of, challenges, and concerns surrounding mergers and acquisitions. It consists of articles including case studies, interviews and questions and answers and other sources.
Companies often join or acquire to expand faster, gain greater market share, enter new markets, and boost their competitive edge. Whatever the reason success, successful M&A strategies require careful planning and execution.
The most typical type of M&A involves two businesses combining to become one, but an acquisition company can also acquire a different company. It is different from merging, as it’s considered a transfer of ownership.
When M&As occur in the majority of cases, there is an obvious benefit for both parties. For instance, financial M&As, are often pursued in order to obtain assets or cash at discounted prices. Strategic M&A is about resolving an issue or a potential opportunity. It could be about acquiring new products as well as expanding facilities or gaining expertise and intellectual property. In the past, businesses have even utilized M&A to get out of a bad business environment. For example, during the financial crisis of 2008, many banks merged with each other to get through the crisis.
If a company is deciding to pursue an M&A it has to consider the effect of the deal on its employees. Employees might be worried about how their benefits will change, whether they’ll fit into the culture and so on. HR must be prepared to tackle these issues with a clear and professional manner.