firm targeted for acquisition must have sufficient amounts of profits to offset the costs of purchase and integration. In addition to market control and profitability considerations, financial manipulation plays a role in mergers.
However, markets still exist for small or moderate-size firms. Many highly profitable small firms are not targets for acquisition; they can exist in small or localized markets. For example, the market for specialized luxury goods is small, and the market for ethnic goods or foods is generally localized. Some items have small markets because they are unique or idiosyncratic, and they are called niche markets. Industries need not be confined to niches forever Small restaurants - mom-and-pop operations requiring long hours for low profits - have always existed. As the demand for quick and inexpensive meals outside the home increased, heavily advertised chains moved in and took over the market. By combining the advantages of centralized control with nominal local ownership, they have been able to reap the advantages of low-paid l
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