- This topic has 0 replies, 1 voice, and was last updated 3 years, 1 month ago by .
Viewing 1 post (of 1 total)
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.
The going concern principle governs the way firms operate, and companies opt for mergers and acquisitions (M&A) to salvage financial and operational challenges. Synergy, fast growth, competitive advantage, and changing markets are elements that drive companies into M&A. Firstly, synergy is a crucial element that prompts M&A among companies. It entails combining two independent companies to increase their value and performance. Revenue, financial, and cost are some of the synergies that companies consider before merging. The management evaluates the combined revenue ability, cost reductions, and the economic advantages of a merger. Secondly, increased growth exhibited in industries resulting from technological advancements and globalization prompt M&A. The continued advances threaten operations of medium-sized firms which opt to join larger entities. Thus, synergies and increased growth drive firms into adopting M&A.
Furthermore, competitive advantage and capital market access trigger an increase in firms merging to help remain operative. The entry of new companies into a sector can impact the market cap and clientele base. Therefore, a merger can facilitate continued operations and a competitive edge in an industry since the M&A increases workforce and equity. Lastly, the ability to access the capital market drives organizations to adopt M&A. However, the intended growth and expansion require significant capital, and M&A facilitates listing in the stock market. Through initial public offers, firms can raise the equity needed to accomplish their objectives. Thus, gaining a competing edge and listing in the capital market triggers firms into undertaking M&A.
Trainings
Cookie | Duration | Description |
---|---|---|
cookielawinfo-checkbox-analytics | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics". |
cookielawinfo-checkbox-functional | 11 months | The cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional". |
cookielawinfo-checkbox-necessary | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary". |
cookielawinfo-checkbox-others | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other. |
cookielawinfo-checkbox-performance | 11 months | This cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance". |
viewed_cookie_policy | 11 months | The cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data. |
In order to become a charterholder you need to complete one of the IMAA programs