Wednesday, September 9, 2009

What is Merger and Acquisition

Hi friends this post is about Mergers and acquisitions. This term will be new for most of the people. Generally this phrase of Merger and Acquisition is called (M & A) and it is a corporate strategy used by companies which involves both buying and selling. I think it is better if I could explain you about each term in detail. Acquisition is the process where one company can buy or get another company. This is can be friendly and in that case negotiations are made and in the other case is when one company can get another without giving any prior info. The other term "merger" is quite self explanatory which means two companies combine together to form a bigger company. Generally merging is done on mutual agreement and it is done for the financial betterment of both the companies or to become a threat in business for some other leading company. Example Yahoo and Microsoft got in to a deal to overthrow Google dominance in the Internet World.

This is not so easy since there is so much of business strategy involved in this. So companies spend a lot of time in analyzing their new business strategies and will do the necessary feasibility analysis. Companies generally do pre-sale consulting which helps them to identify their weak areas and show some considerable improvement in those particular areas. They also suggest a lot of ideas to increase the transactional value of the company. The sale of the company is boosted after the Locke Bridge pre-sale consulting team's advice. They give us a better insight of what problems we are facing and also give us better idea how to improve the company from this stage and create a high value for the company in the market. The Locke Bridge have got the Consumer Services Deal of the Year which is not a joke and it is a very big award.

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