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What you need to know about Mergers & Acquisitions

In the present scenario both mergers and acquisitions are coming to be seen, as necessary moves with the needs and wants of the market as a sole purpose for a majority of such decisions. These have many perks underlying it which make it adhering to company owners and stakeholders.

The arrival of a complex market alongside a very flexible corporate environment makes mergers an easy as well as a wise choice for investors. Mergers often happen between dominant players in separate industries or within the same one which is better described as a horizontal merger. Both combinations have their own variety of advantages which is up to the owner or shareholder to decide.

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Advantages of Mergers & Acquisitions

  • Elimination of Weaker Segments

    Elimination of weaker segments within companies by replacing them with a more orderly and efficient system of working.
  • Acquiring the Employees

    Acquiring the employees of a fellow company during mergers and acquisitions is a normal process. This mainly happens when a very dominant player takes hold of the operations of a start-up through an acquisition or merger. This is seen to boost growth by improving work efficiency a talent pool within the company.

  • Tax Liability

    Various companies in debt often opt for mergers in order to leave the noose readied for them hanging empty. This also decreases the tax liability of the bigger company to its government.

  • Majority No. of Shares

    An acquisition or merger can be conducted in various manners depending on the decision of shareholders and owners. They can either decide to sell the company or just allow the buyer to take control of a majority number of shares.

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