STRATEGIC MANAGEMENT: MANAGING MERGERS & ACQUISITIONS

In this paper we have discussed what mergers and acquisitions are and how they are a part of any organizations strategic planning policy. Organizations ‘merge’ generally with similar organizations or ‘acquire’ weaker organizations, and the essence as to why they do so is that the value of two is greater than one. They basically merge with or acquire each other’s strengths and try to overcome one another’s weaknesses thus leading to increased market shares and profitability. We have discussed the various rationales for mergers and acquisitions like the strategic rationale, speculative rationale, management failure rationale etc, along with their types that include vertical integration, horizontal integration and conglomeration. We have also put light on how companies go strategically about mergers and acquisitions. The merger and acquisition life cycle aided by real examples (case studies) will offer a vivid understanding of these concepts to the reader