Importance and Benefits of Merger and Acquisitions

 Merger and Acquisition (M&A) is the process of combining two companies into one. The objective of combining two or more companies is to work jointly and achieve business objectives. If we try to understand two terms “merger” and “acquisition” separately, then merger is the combination of two or more organizations to form one; while in the acquisition, one company takes over another.    

Merger is considered as friendly and fair business activity, in which two organizations are about the same size mutually agree to become equal partners in a new venture. In merger two companies, take advantage of other offers in terms of increasing sales, efficiencies, and capabilities.   Acquisition either can be a friendly or hostile business activity. In acquisition, one company buys another company and folds it into its operations.

The key advantages of Merger and Acquisitions:

·         Many governments offer tax waiver, in case of mergers and acquisitions.

·         Merger and Acquisition create economic scope for the company. When a company struggles to achieve growth solely, in such scenario merger and acquisition unlocks the doors of new opportunities.

·         When two or more companies work jointly to achieve a common business goal, then there are very few chances of any loopholes.

·         Merger and Acquisition enable companies to easy access to a skilled labour force.

·         After Merger and acquisitions, companies can access a wide range of products or services. By joining forces, the portfolio of the new business can increase even more and gain access to a larger market share.

·         Mergers and acquisitions ensure the growth of both organizations involved in the transaction. This means more revenue can be generated by pooling the income of both businesses.  

Merger andacquisition services by legal organizations in India are cost-effective, and provides a full range of corporate law services to both national and international companies and groups. India’s merger and acquisition lawyers have great work experience in tax, consulting, accounting, and financial advisory practices to provide clients with cohesive guidance based on their individual and unique circumstances.

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