Young Leaders Programme (YLP)
Management Development Institute ,GurgaonOpen For Admission
Mergers and acquisitions are becoming a popular option and access point among the businesses which are planning to spread their wings across frontiers and countries beyond barriers and thereby obtain newer business entities and skills with superior finesse. Mergers and acquisitions are gaining popularity among professional services due to the rapid change in the economy across the globe.
Mergers and acquisitions are broadly classified into two types and they are strategic and financial. In the financial merger, the assets and liabilities of the acquired company are taken over by the buying company. Strategic mergers and acquisitions form a long-term strategic association with the acquired company and might provide a resolution to their prevailing business conflicts and may look to establish collaborations through enhanced market share, wider customer base, or even might lay their hands on newer products on the whole or addition of newer facilities. In short, this strategic merger and acquisitions will prove to be worthy to both parties and becomes a win-win situation.
The former Disney CEO, Bob Iger was once quizzed about the extraordinary renaissance of the Walt Disney Company over the past couple of decades and his emphatic reply was that Disney’s success lies in the effective usage of mergers and acquisitions for business growth. Over the period of time, Disney had taken over some of the leading film production companies including Pixar, Marvel, 20th Century Fox, LucasFilm with each bringing their uniqueness along with them. Pixar brought the most advanced animation techniques along with them while Marvel and LucasFilm brought the merchandise film rights so that they can market through their retail branches along with bigger movie franchises with them. In the case of 20th Century Fox, it brought the largely valuable directory with them. These facts and figures of Disney prove their extremely successful mergers and acquisitions strategy in the market.
Advantages of appropriately utilizing mergers and acquisitions for business expansion
Rapidly venturing into newer business: In order to make inroads into a newer market would take ages in the traditional method but through mergers and acquisitions, the company can step into a newer avenue effortlessly.
Gaining access into the market with reliability: One can experience the true impact upon gaining access to the marketplace with reliable partners particularly when markets are inundated. We can gain financial profit through familiar and trusted deals.
Obtaining intellectual property: Non-physical assets will come under the intellectual property which includes trademarks, patents, and copyrights. Even ideas can be converted into money-making services and options.
Obtaining talented professionals: Mergers and acquisitions are the key methods for getting talented professionals in the industry. As part of the change management system, one can obtain and retain talented professionals.
Decrease the business opposition: The company will be functioning at lesser costs after mergers and acquisitions, as they have more financial support from M&A. Thereby, reducing the business competition.
In addition to the above-mentioned facts, during mergers and acquisitions when an organisation is we obtain acquired a company, we will have the acquiring organisation has the opportunity to retain their clients and contracts as well as their financial profits, their properties, and possessions along with them. Thus, the mergers playing and collaborations play an important role in business growth.
To have the right understanding of these concepts, it is important to learn from the experts. Advance Management Programme in Business Finance by MDI Gurgaon is designed to equip professionals with advanced financial tools and techniques which will help them in making informed strategic decisions and build control systems for better financial management.
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