The Nonfinancial Motives
March 10, 2011 by admin
Filed under Uncategorized
The nonfinancial motives for mergers and consolidations include the sire to expand management and marketing capabilities as well as acquisition of new products. Particularly popular industries in the 1, merger movement—in addition to energy-related companies—have 1 companies in entertainment, retailing, food products, and financial services.
While instyler mergers may be directed toward either horizontal integra (that is, the acquisition of competitors) or vertical integration (the quisition of buyers or sellers of goods and services to the compa antitrust policy generally precludes the elimination of competition. this reason, mergers are often directed toward companies in allied not directly related fields. The pure conglomerate merger of firm totally unrelated firms is still undertaken, but less frequently than in past.
Perhaps the greatest management motive for a merger is the pos,, synergistic effect. Synergy is said to take place when the whole is gre than the sum of the parts. This “2 + 2 = 5″ effect may be the re of eliminating overlapping functions in production and marketing as as meshing together various engineering capabilities.
