Merger and Acquisition

Merger and Acquisition (M&A) objectives can be classified into ternion categories. These objectives are not mutually exclusive. In fact, their benefits and challenges are accumulative in most cases (1). Acquire new markets: In this new rise in M&A activity, market acquisitions prevail, including an maturation in the number of cross-border deals, in which buyers are increasing their corporeal global presence and access to new customers. Cost reducing through synergies: Increasing efficiencies by creating economies of scale is the key number one wood in achieving this traditional M&A objective. In particular, in highly fragmented and mature industries, acquisitive strategies are a great deal cost focused. Obtain new products or technologies: These M&A deals focus on complementing product lines or acquiring technologies that grant companies with an advantage over their competitors. One of the key drivers behind the torrid pace of M&A activity in upstart years has been growth. Acquirers look for acquisition-related growth opportunities through up-selling and cross-selling their products to the signs customers and vice versa. Sometimes acquiring a company in a market where the acquirer has no presence helps leaping start the acquirers sales plan for that office (1).

Challenges in Acquiring New Markets From a strategic viewpoint, this natural growth rationale makes good sense. However, companies often fail to slang the synergies from this type of acquisition due to the following challenges (1): Ineffective consolidation and integration of internal sales and marketing functions and sales take inhibit cross-selling and up selling into new market segments. A lack of well defined and documented sales cognitive operation hinders the acquirers ability to sell the targets products through its sales channels and vice versa. An inadequate customer relationship management (CRM) process makes it difficult to know your targets customers and their buying habits, resulting in... If you want to get a replete(p) essay, order it on our website: Orderessay

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