The term merger Essay Example | Topics and Well Written Essays - 500 words

The term merger - Essay Example2. Forward/ regressive integration By merging itself with a client or a vendor companion, a company can result in assured raw actuals/sales, minimize uncertainty and get better pricing. For example, an push and Steel manufacturer whitethorn merge itself with a mining company to secure its raw material supply.3. Expanding harvest/services bouquet By merging with similar but non competing firms, companies can increase their product offering, enter new markets and cross sell their products. For example, a website development firm may merge itself with an mesh analytics and Internet marketing firm and cross sell its services. Similarly, a Iron and steel manufacturing company may merge with a Sheet rolling company to move up the value chain.4. Expanding in another(prenominal) geographical markets Business organizations also use cross border mergers and acquisitions to expand into new geographical markets. Mergers and acquisitions argon perhaps the fast est way of entering a new geographical market.There have been many studies and researches conducted that tried to enumerate the reasons behind successful mergers.