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The mergers and Acquisitions strategy is the process in which one company buys, sells, or combines with other companies to achieve certain goals or growth in the market. Considering various factors like market value of the corporate stock, financial position, strengths and weaknesses of the company, and growth opportunities.
Big companies hunt for small companies in order to acquire those companies for various reasons like-
Business Expansion
Research and Development
Different companies have different policies for mergers and acquisitions which need to be taken into consideration during the process. There are situations when companies even after a merger and acquisition, reasons are:-
Improper execution
Lack of strategies
Improper planning
Strategies of Mergers and Acquisitions
The first step in the M & A process is the hunting of target companies they plan to acquire or merge with.
The next step is to study the business, risk, and growth opportunities.
Study the market thoroughly, this will provide a complete overview of business growth, customer demand, and product demand.
Before applying any strategy, there should be the consent of both the company: Acquiring and the target IPO company.
Strategies should also involve staff involvement, work environment, and gathering knowledge and knowledge.
At last, after considering everything, the promoters and shareholders of both companies finalize the merger and acquisition deal.
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