BUS 485 Topic 5 DQ 2

Max Points: 5.0

What do you think are the criteria a firm should use to evaluate targets for acquisition and how should a company plan and undertake its merger acquisition strategic initiatives?

might decide to merge because of various reasons such as: synergy, diversification, ROI, growth and much more. According to Investopedia “Mergers can give the acquiring company an opportunity to grow market share without having to really earn it by doing the work themselves” (Investopedia 2006)I think growth acquisitions and diversifications might be the largest reasons companies merge, because they can gain more with less work. I think the criteria should be that they gain something worth the financial investment to acquire a new business. This could be any of the things I mentioned above and more. Planning should be taken in many steps, such as checking legalities, finances, and making proper agreements to making sure the company is all it says it should be.

Why do companies merge with or acquire other companies? | Investopedia. (2006). Retrieved July 16, 2016, from http://www.investopedia.com/ask/answers/06/mareasons.asp