Merger and Acquisition in India

Mergers and acquisitions is a common term used in business these days. Mergers and Acquisitions refers to that aspect of corporate strategy, corporate finance and management dealing with buying selling and combating of different companies that can aid, finance or help a growing company in a given industry grow rapidly without having to create another business entity.

All companies which are interested in merger and acquisitions, are having a specific objective behind this process like:
  1. Combined economy can often reduced its fixed cost by removing duplicate departments or operation, lowering the cost of revenue, thus increasing profit margins.
  2. With the help of merger the share in the market will increase.
  3. A profitable company can buy a loss maker to use the targets loss as their as their advantage by reducing their tax liability.

Though this list is illustrative, there are various other purposes which are in the mind of business entities. The process of mergers and acquisitions is a great concern for all the companies who intend to go for a merger and acquisition because the deal is going to heavily affect the benefits derived out of merger and acquisition. So all the companies are looking for such process by which they will able to maximize the returns.

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