The term ‘business growth’ is used to refer to various things such as:
1. increase in the total sales volume per annum,
2. an increase in the production capacity,
3. increase in employment,
4. an increase in production volume,
5. an increase in the use of raw material and power.But in actual way, business growth means an increase in the size or scale of operations of a firm usually accompanied by increase in its resources and output.
Mergers and Acquisitions (M&As) is a potential strategy for ensuring the accelerated growth of a business.” The various reasons are as follows:
1. It is often cheaper to acquire an existing unit than to set up a new one or less expensive.
2. New ways to generate ideas.
3. It provides economies of large-scale operations.
4. Easy and Better utilization of funds can be made to increase profits.
5. Gaining economic and marketing power.
6. More possibility of diversification.
7. More efficient use of resources can be made.
8. Sick firms can be rehabilitated by merging them with strong and efficient concerns.
9. It is possible to gain quick entry into new lines of business.
10. It can provide access to scarce raw materials and distribution network.
11. Supporting managerial expertise’.
12. Analysis client’s requirements
13. Valuing companies
14. Identifying potential partner’s.
