Keep me logged in until I sign out. Being acquired by another corporation can be a lucrative long-term growth strategy for some companies. Product development is expensive and takes a long time. Especially in technology markets, products have a short shelf-life. Mergers and acquisitions have become a new way to enter a market with a desirable product.
Mergers also can expand a customer base when two complementary companies join.
The founders of a company making an IPO often risk everything they have on the venture. They cannot count on the IPO to provide them with personal resources. In a merger, however, it is possible to structure a transfer that will guarantee a business owner at least some return on his investment. Rolling out a new product to successfully compete with a known brand is more difficult than simply purchasing the brand. Mergers can also be a good way to decrease your competition-if you can't beat them, buy them.