The Stratergies For Mergers and Acquisations: Balancing Shareholder Value and Stakeholder Intrests

Abstract

The term ‘Merger’ and ‘Acquisition’ they are used often and are interchangeable and are confused many a time. Two companies who are different they come together by Merging or by Acquiring it to in the intention to meet the profit. Here merger refer to the two company who join together to have best outcome for their innovative ideas to expand their business. Whereas Acquisition refers to the company which acquires, purchase or buys another company’s share or asset. In simple words the merger is fusion of two players to bring single entity to existence, while acquisition is where one player buys the other to bring that entity with him in way of management buying the business from the owner. Merger and Acquisition are the terms which are frequently used in the business world for their rapid growth and for the best economic output. It includes both Competition and Corporate Law. Merger and Acquisition exhibits the external growth process of the Company, as well it is used as tool for the significant growth accepted as evaluative game plan by Indian Business. The terms are even used as preferred aid for corporate building and to serve variety of business objectives. Some of reasons put forward for the Merger and Acquisition are: to enhance the market, have a greater play at market, and have access to innovative outcomes of business strategy which may reduce the burden associated with the development of new product or service, it adapts the new competitive scope for firm by maximizing the efficiency. 1