Merger and Acquisition Banking Industry in India
Mergers and acquisitions (M&As) are the acts of consolidating companies or assets in order to achieve growth. M&A also helps industries to gain stimulating growth and gaining competitive advantages, increasing market share, or influencing supply chains.
In some cases, the choice could be either to close shop or merge with an existing company. During a merger and acquisition, two businesses combine to create one entity. The entity created during the merger may keep the name of one of the businesses or take on an entirely new identity.
Disadvantages of Mergers
1) Increased market share can lead to monopoly power and higher prices for consumers.
2) A larger firm may experience diseconomies of scale – e.g. harder to communicate and coordinate.
Download Study guide Merger and Acquisition Banking Industry in India to understand how M & A actually works and what are the key advantages / benefits.