Why do companies seek growth through mergers and acquisitions

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  • Why do companies seek growth through mergers and acquisitions
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Name Instructor Course Date Mergers and Acquisitions Companies seek growth through mergers and acquisitions for various reasons. Firstly, mergers and acquisitions enable firms to expand their geographical operations by acquiring and merging with other firms in distant locations. Also, when a firm acquires another firm, it adds up to its products and services and is able to offer more services to the consumers. This enhances its competitive ability. Thirdly, mergers and acquisitions enable firms to combine their resources together to operate on economics of scale. Economies of scale enable the firm to ensure cost reductions through consolidation of front and back office services. The increased synergies in terms of resources, reduction of costs and skill enable the firm to offer a sharper...

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