{"id":2009,"date":"2022-01-23T20:38:30","date_gmt":"2022-01-23T20:38:30","guid":{"rendered":"https:\/\/joaquinlopezpascual.com\/economic-reasons-for-mergers-and-acquisitions\/"},"modified":"2022-02-09T10:01:30","modified_gmt":"2022-02-09T10:01:30","slug":"economic-reasons-for-mergers-and-acquisitions","status":"publish","type":"post","link":"https:\/\/www.joaquinlopezpascual.com\/en\/economic-reasons-for-mergers-and-acquisitions\/","title":{"rendered":"Economic reasons for mergers and acquisitions"},"content":{"rendered":"

M&A SYNERGY<\/h2>\n

The merger aims to increase the market value of the companies. This is explained through the synergy effect.<\/p>\n

The market value of the joint venture exceeds the sum of the market values \u200b\u200bof the companies considered independently.<\/strong><\/em><\/p>\n

The economic decisions of the company must tend to increase its market value, that is, to maximize the value of its shareholders.<\/p>\n

The synergy effect consists precisely in increasing the market value through integration or collaboration processes.<\/p>\n

M&A (Mergers and Acquisitions) operations are complex and carry significant risks.<\/strong><\/p>\n

An M&A transaction is an investment decision.<\/p>\n

TYPES OF SYNERGY<\/h2>\n

\"\"<\/p>\n

REASONS TO PERFORM MERGERS AND ACQUISITIONS (M&A)<\/h2>\n

Acquisition<\/h3>\n

Combination of two companies in which only one company survives. The acquired company disappears. The acquiring company assumes the assets and liabilities of the acquired company.<\/p>\n

A + B = A<\/strong><\/p>\n

Fusion<\/h3>\n

Combination of two or more companies to form an entirely new company.<\/p>\n

A + B = C<\/strong><\/p>\n

REASONS TO MAKE M&A<\/h2>\n