Monday, March 4, 2013 - 2:22 AM
Mergers and acquisition has become the most famous process in the business world. The key factor assisting to the explosion of this innovative pattern of restructuring is the huge number of advantages it boasts to the enterprise world. The very first advantage of mergers aquisitions is synergy that boasts a surplus power that enables enhanced presentation and cost effectiveness. When two or more businesses get together and are sustained by each other, the producing enterprise is certain to gain tremendous earnings in periods of financial earningss and work performance. Mergers acquisitions in the banking sector is a widespread occurrence across the world. The primary target behind this move is to attain growth at the strategic level in periods of size and customer groundwork. This, in turn, rises the credit-creation capacity of the merged bank tremendously. little banks fearing hard-hitting acquisition by a large bank occasionally go in into a mergers to increase their market share and defend themselves from the possible acquisition.Banks also favour mergers acquisitions to reap the benefits of economies of scale through decrease of costs and maximization of both financial and non-financial benefits.
2 posts since
Jan 29, 2013
Rep Points: 2
1. Monday, March 4, 2013 - 5:51 PM
Merger acquisitions can also be a way to acheive a monopolistic stranglehold on the market and suppress deposit rates for the benefit of the merged entities. The industry never tells you about this aspect of why they like to acquire their competitors.
552 posts since
Aug 3, 2010
Rep Points: 3,431
2. Monday, March 4, 2013 - 6:12 PM
During the financial crisis, the M&A activity took place at the behest of our beloved government!
Chase + WaMu, Wells Fargo + Wachovia are the examples. In this sort M&A activity megabanks were forced to save the "system". This is an additional dimension of the advantages of the M&A activity.
64 posts since
Feb 28, 2013
Rep Points: 197