The term merger Essay Example | Topics and Well Written Essays - 500 words

The term commixr - Essay Example2. Forward/backward integration By merging itself with a client or a vendor company, a company can result in assured raw materials/sales, minimize uncertainty and get dampen pricing. For example, an Iron and Steel manufacturer may merge itself with a mining company to secure its raw material supply.3. Expanding product/services bouquet By merging with similar but non competing firms, companies can increase their product offering, enter new markets and cross sell their products. For example, a website development firm may merge itself with an Internet analytics and Internet marketing firm and cross sell its services. Similarly, a Iron and steel manufacturing company may merge with a Sheet bowl company to move up the value chain.4. Expanding in other geographical markets Business organizations also use cross border mergers and acquisitions to expand into new geographical markets. Mergers and acquisitions are perhaps the fastest way of entering a new geographical market.There have been numerous studies and researches conducted that tried to enumerate the reasons behind palmy mergers.