Explain positioning, gap filling, organizational competence, broader market access, bargain purchase, diversification, short term growth as the strategic reasons for mergers and acquisitions
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Positioning: This refers to the strategic move to place a company in a better position within the market or industry. Mergers and acquisitions can help a company to gain a competitive edge, increase its market share, or enter into a new market segment. Show more…
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b) The term "merger", we are referring to the joining of two companies where one new company will continue to exist. On the other hand, the term "acquisition" refers to the purchase of assets by one company from another company. Giving examples, discuss the strategic reasons for mergers and acquisitions. (8 marks)
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