Mergers acquisitions blog is a resource to learn about the advantages, challenges, and issues surrounding mergers and acquisitions. It contains essays, case studies and interviews, in addition to other useful resources.
Companies frequently merge or acquire to boost their growth and increase their market share, expand into new markets, or increase their competitive edge. Whatever the reason successful M&A strategies require careful planning and execution.
The most common M&A involves the merging of two businesses into one. However, an acquisition firm may also purchase another company. The distinction between merging and buying an organization is that the latter is an ownership transfer.
M&As are usually conducted with the interests of both parties in mind. A financial M&A is a good example. is usually pursued to acquire cash or assets at a discount. Strategic M&A is, on the other it is focused on solving a specific business challenge or opportunity. It could be about getting new product lines and expanding facilities, or gaining expertise and intellectual property. M&A has been used by companies to escape a bad business environment in the past. In the 2008 financial crisis for example, many banks merged to stay afloat.
When a business makes an M&A, it usually has to think about the impact on its employees. Employees may worry about how their benefits will change, or if they'll be able to integrate into the culture or not, etc. HR should be prepared to address these concerns in professional and clear terms.