Motivation behind M&A

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The main motive behind M&A is economic growth. This can be done in many ways.

• Reduction of fixed costs by removal of duplicate departments and operations.
• Increase the markets shares
• Selling the first company’s products to the customer of the other company and vice versa. This is called selling.
• Improving the marketing and distributions aspect of the company according to the demand.
• Reducing the tax liability by taking over a company that is under loss
• Expanding the company to other markets by diversifying geographically.