Is Merger and acquisition that necessary for the growth and expansion? - TechRepublic
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May 11, 2011 at 12:24 AM
kenblake

Is Merger and acquisition that necessary for the growth and expansion?

by kenblake . Updated 15 years ago

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It???s seen that many company apply the merger tool to expand their business, it???s considered a turnover magnifier technique. But when the company is doing too well and but somewhere thinks of expanding overseas, and then thinks of a big father of the market to acquire it and give the feed in the form of a brand. Usually mergers and acquisitions have proved pretty well in the short run, but when it comes to a long run, it matters because either of the merger or acquired company has to lose its name and rely on a percentage of the outcome. It loses its identity. Today when Microsoft is thinking of purchasing Skype, the latter is in a fear of losing its identity but is also eager to target double the number of existing clients. Is merger and acquisition only for profit, as it never sustains the name or brand from where it was originated?

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