Why are there an increasing number of mergers with companies in different industries? Give some examples. What industry do you think will be the next for global consolidation?
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Reasons for Increase in MergersBusinesses and companies are formed with the overall aim of profit maximization. However, sometimes it becomes difficult for companies to meet their obligations and fall in place. It may lead to either liquidation or mergers with other firms in the industry that are well-performing. Liquidation is the last option available for the company since it involves strict legal procedures and is a bit expensive. Thus, the report entails the reasons behind the increase in mergers in the industry.Companies merge to increase value creation for their shareholders. It is achieved when a business acquires more revenue than the expenses incurred. Each business's overall aim is to create and maintain value to enhance the industry's maximum utilization. When a firm merger with...
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