Mergers and acquisitions (M&A) are forms of consolidations between companies that involve fusing of multiple entities into a single company. Mergers represent synergy of operations, forming new entities that can have less competition on the market (instead of competing for the customers resources can be used to improve product which will benefit both, customers and salesman).
The session on why most mergers fail was particularly insightful. We bring a pragmatic point of view when sharing various case studies across different industries, which is thought-provoking to say the least.
By merging we get larger corresponding resources for marketing, product expansion, and obtaining financing. On the other hand acquisition means that one company purchases another company with rights to sell their operations, merge them into another similar group or close facilities and cancel products. There are various reason for acquisitions, from obtaining specific product (sometimes it’s easier to purchase company offering a product than building the product yourself), over increasing companies size (larger company is more visible on the market, etc) to obtaining control over a critical resource.