Corporate Mergers Corporate Mergers Introduction Concept Identification Corporate mergers are a complicated and difficult procedure that requires a long process and many people.
Mergers take place for many reasons.
One frequent merger objective is to capture a greater share of the market which the company serves. A merger may make it possible for the company to offer a complete product line for the first time, or it may expand the geographic area in which the company sells its goods. Many companies embark on merger programs to avoid the cyclical effect of a single industry, to minimize the impact of adverse conditions in a particular market, or to be able to participate in new growth areas. Companies will also merge to increase manufacturing. When corporations combine two manufacturing units, weaknesses can often be strengthened, over capacity eliminated, and overhead can be reduced.