Mergers Acquisitions Blog
The Mergers Acquisitions Blog is excellent resource to learn more about the challenges, benefits and concerns that arise from mergers and acquisitions. It is composed of articles including case studies, interviews, questions and answers, as well as other resources.
Companies often merge or acquire to boost their growth or increase their market share, expand into new markets, or boost their competitive edge. Regardless of the reason successful M&A strategies require careful planning and execution.
The most frequent M&A involves the fusion of two businesses into one. However, an acquiring firm can also buy another company. The difference between merging and buying a company is that the former is a transfer of ownership.
When M&As occur in the majority of cases, there is an obvious benefit for both parties. A financial M&A is an example. It is often pursued to obtain cash or assets for a price that is lower. Strategic M&A is about solving some specific issue or opportunity. It could involve buying new product lines or expanding your facility, or acquiring intellectual property or expertise. In the past, companies have also utilized M&A as a way to get out of a difficult business environment. For instance, during the 2008 financial crisis, several banks joined forces to get through the crisis.
If a company decides to make an M&A the majority of the time, it has to think about the impact on its workforce. Employees might worry about whether they’ll fit into the culture of the new company, how their benefits will change, and much more. HR must be prepared to discuss these concerns in an appropriate and concise manner.
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