Mergers, Acquisitions, and Divestitures Activities

Merger and Acquisitions 5
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Merger and Acquisitions 5
Mergers, acquisitions, and divestitures are corporate techniques that expect thorough planning, implementation, and control (Kupcunas et al., 2013). A merger or acquisition refers to the opposite of a divestiture. The latter includes selling or spinning off a firm’s business constituent or subsidiary (Aktas et al., 2022). Mergers and acquisitions (M&As) make corporate sense. Lageranna and Crawford (2018) argued that within the modern evolving economy, businesses are using M&As in most parts of the planet as a strategy to attain a more crucial asset base for intruding emergent markets, creating greater market shares and extra manufacturing capabilities, and realizing strengths and understanding, to be entirely competitive over the rivals in the same industry. Also, M&As are sensible; they have significant potential to improve market power and effectiveness. Firms can attain economies of scale by combining capacities, resources, talents, and consumer bases. The activity results in cost-effectiveness, more market share, and boosted bargaining power with clients and suppliers. M&A actions also allow companies to enter markets and use new technologies and distribution channels, enhancing market growth (Hitt et al., 2012; Demirer & Karaduman, 2022).
Divestitures are also part of most businesses’ journeys, inspired by constantly changing business objectives such as extending to new regions or spinning off to an emergent business line (Chadha, 2022). Though divestitures have received limited attention com...