Although the words merger and acquisition are pronounced in the same breath and in literature ‘M&A’ is used as a phras, as if both the words mean same thing, but they are not necessarily the same thing. Many scholars are of the view that both are different growth strategies and stem from different theories. Sherman and Hart (2006) are of the view that merger happens when two companies become equal partners, and in acquisition larger company acquires a smaller company. Ullrich, Wieseke and Dick (2005) opines that the difference between merger and acquisition has somewhat blurred. However, they believe, in merger two separate companies become a single larger company and in acquisition stronger company absorbs the weaker company and grows in size while keeping its identity.
                                          Image result for mergers and acquisitions
Literature on M&A shows there are significant amount of motivations behind M&A. Gaining efficiency in the form of synergy is a big motive behind M&A (Ross, et al., 2012). Increasing market share and gaining access to new market is another strong motivation behind M&A. Study by Wang & Zajac (2007) shows increased market share enables the company competes more effectively. Diversification and acquiring new business lines are also important motivations behind M&E ((Martin & Sayrak, 2003). Where synergy exists after M&A transaction there is high probability that value will be created (Petitt & Ferris, 2013).
As regards success of M&A initiative, it is highly necessary that the financial knowledge, strategic management, and organization practices be properly combined (Weber et al, 2014). Sound business strategies are crucial for success of M&A transactions. The outcome of an M&A deal depends to a very great extent upon the ability of the management to integrate the members of the merging organizations and their respective cultures.
According to Koller, Goedhart and Wessels (2005) M&A may very well lead to creation of values that contribute to stronger economy and more employment opportunities. Previous studies on creation of value by M&A suggest that shareholder value maximization should be the primary objective of the board members and executives (Paskelian and Bell, 2015).



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