The Motives Behind the Merger Finance Essay
Summary This article attempts to examine the motives behind the merger and acquisition strategy of Indian companies. Covering domestic activity for twenty years, 1998-2017, the firm-level determinants of acquiring and acquired firms are studied to analyze merger motives. The results of Logit and the discrete-time hazard model, Why Could a Company Decide Merge, What Are the Motives Behind a Merger. Business A-Level A company may decide to merge to benefit from economies of scale. When the two companies merge, if it is a horizontal merger, they can combine their production and finances. The research has shown that mergers are more successful in times of economic downturn (Nigro & Kanter, and Polonchek & Sushka, 1987). Therefore, it can be said that the companies should consider both internal and external factors while analyzing the merger situation. Motivation behind the mergerThis study uses a recent. developed a technique to examine post-acquisition evidence about the motives behind mergers and acquisitions. acquisition activity. With the help of a sample, acquisitions in the. Motive Enhancer Objective behind the merger of PSBs. The Finance Ministry believes that the merger of public sector banks (PSBs) will help India achieve a multi-billion dollar economy. Most important points. Mergers and Acquisitions M amp As well as the acts of consolidating businesses or assets, for the purpose of stimulating growth, gaining competitive advantages, increasing market share, or.