Mergers & Acquisitions

The negative publicity and image that mergers and acquisitions gained during the 1980s fails to recognize that the art of bringing together two companies in order to take advantage of synergy, eliminate competition, or expand one company's prospects when its primary market is being lost, has been going on for hundreds of years (Adams & Brock, 1989, p. 4). The tradition goes back to bringing sons-in-law into the family business, combining their family business with their bride's, for example.

In recent times, mergers and acquisitions have proven effective ways for companies to enter new markets, to expand their current market, and to take advantage of the purchasing power that increased size provides, even when the company being acquired is in a very different industry. This r

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e networking and business relationships. As personnel change companies, they may bring with them some of their key clients. Companies who are starting from scratch do not yet have the reputation which would encourage large investors from placing the amount of funds with them that would be required to build reputations. In this way, barriers to entry are considerable. Customers and suppliers in this market are not traditional customers and suppliers in other markets. Customers are not purchasing tangible goods; suppliers are not offering tangible components. Instead, suppliers are those investors willing to place money with the various companies while customers are those companies that use the organization for its M&A activities. It is common for customers to have been suppliers at one time, or for suppliers to result from customers. There is an interrelationship among the two that is hard to find in other industries or markets (Smith, 1990, p. 42). As a result, customers and suppliers in the M&A market hold considerable power over those companies with whom they do business. If a company such as Philip Morris decides to pull its account and M&A activity from a particular company, that organization could find itself in sig
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Some common words found in the essay are:
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Approximate Word count = 3797
Approximate Pages = 15 (250 words per page)

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