Buy custom Failure risk in M&A
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Topic: |
Business
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Number of pages / Number of words: |
10 / 2521 |
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Generally speaking, synergies created through a merger will either reduce costs or increase revenue. Cost synergies can be achieved through economies of scale. Revenue synergies are typically created by cross-selling products, expanding market share, or raising prices to take advantage of reduced competition...
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Managers often turn to merger and acquisition to grow their companiesâ revenues. Merger and acquisition is especially common in mature industries and it is considered less risky way to merger with an existing company than developing an unfamiliar market. Acquisitions can also create tax advantages that investors can not gain on their own...
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