Mergers and Acquisitions

MERGERS AND ACQUISITIONS 4

Mergersand Acquisitions

Mergersand Acquisitions

Mergersand acquisitions are a strategic business expansion method throughwhich organizations establish expansive business empires throughacquiring other organizations or merging with others. Mostorganizations engage in mergers and acquisitions to expand theirbusinesses and gain vertical and horizontal advantages (Cameron &ampGreen, 2012). By merging or acquiring the suppliers or customerfirms, the acquiring companies take dominance through the expansionin all the fields in the industry (Amporn,2014).At the same time, market share is another reason why firms engage inmergers and acquisitions. They use the strategy to gain more marketshare or monopoly as a way of securing the future as the dominantplayer through the acquisition of the competing firms.

However,there are different aims why organizations get engaged in mergers andacquisitions. While some seek strategic advantages, others seekexpansive advantages. Therefore, different mergers and acquisitionprocesses use different tactics. The world has learnt lessons fromthe mergers and acquisitions strategies that have been active in thelast fifteen years. One of the lessons is that dominance can beachieved through less competition. According to Amporn(2014),organizations can buy off their competition to dominate. Secondly,the power of synergy and large corporations has been felt more due tomergers and acquisitions (Cameron &amp Green, 2012). At the sametime, the world has learnt that mergers present factors of changethat lead to effective business growth if well managed.

Becauseof the changes introduced by mergers and acquisitions, theory ofchange in individuals, groups, and organizations can be used toincrease the rate of success in the process. The theory can be usedto understand the anticipated changes of the individuals, the teamsand the organization as a whole. This will help the leaders of themergers and acquisitions to manage the transition period byconsidering the expectations of the people and the teams in anorganization (Cameron &amp Green, 2012). In understanding theseinsights, this paper explored the article in the reference sectionbecause of their content and rich insight on mergers andacquisitions.

References

Amporn,S. (2014). TheLong-Term Success of Mergersand Acquisitions.IUPJournal of Business Strategy. Dec2014,Vol. 11 Issue 4, p42-59Cameron,E., &amp Green, M. (2012). MakingSense of Change Management: A Complete Guide to the Models Tools andTechniques of Organizational Change.Philadelphia: Kogan Page Publishers