Merger

Sayed Eqbal 120633

*What is Merger?

The combining and joining of two or more companies together.

*TYPES OF MERGER

1. Conglomerate

2. Horizontal Merger

3. Market Extension Mergers

4. Product Extension Mergers

5. Vertical Merger

*Advantages of Merger

Does not require cash.

Accomplished tax-free for both parties.

The company can run out of one headquarters instead of two separate executive offices.

This can save time and money for the new company.

The competition of the companies may face with others throughout the world.

Two companies that merge from the same country can do better at facing international competition than two small companies.

The company may also choose to reduce the amount of staff after the merger.

*Why do Companies Merge?

Synergy

Growth

Increase Supply-Chain Pricing Power

Eliminate CompetitionImprove Competitive Position

Acquire Resources and Skills

Thank you…!