MOTIVATIONS OF MERGER AND ACQUISITIONS (M&A)

Abstract

This study was carried out to gain more understanding on Merger and Acquisitions (M&A) and secondly to identify the drivers that motivates companies to go for M&A. The authors reviewed 13 related journals and found that one of the main reason companies decided to enter M&A was because to increase management effectiveness and efficiency. The authors also found that the term synergy is variously being used in M&A. Basically, in a simple word synergy can be expressed as one plus one equal to three. It can be also defined as the potential financial benefit can be accomplished through the merging of companies. As we know, mergers and acquisitions (M&A) activity can also rebalance and enhance firm business operation either in term of product and services offered and market portfolio.