Module 2 — M&A: The Good and the Bad

Chapter 2.6

Key takeaways from this chapter

  1. For businesses, merger is an attractive option because it enables them to reduce the cost of operation, accelerate the growth, penetrate the market with more ease and last, but not the least, create synergies.
  2. Acquisition is a good option for a company that aims to achieve high growth in minimum time.
  3. While mergers and acquisitions provide business with immense opportunities, they also create certain issues in terms of people management, clashing work cultures and increased debt.
  4. A merger happens when a company is looking to obtain skills and resources but not necessarily by buying another company whereas an acquisition is where one company buys another company.