Question

Please discuss the top three things you've learned about business mergers and acquisitions and how they might benefit your career in the future.

Answer 1

Three important things which I learnt about business mergers and acquisitions are as follows:

1. Synergies: It create more combined value then individual value of each company. It mainly generate hidden value through merger and acquisitions.

2. Increase growth: merger and acquisition increase the growth by removing inefficiencies in the process or generating more value due to economy of scale or by vertical or horizontal merger.

3. Tax management: It is used as a tax management tool as well where a company with excess earning before tax acquire a company which has huge losses over year, thus company which has excess EBT acquire the other company at discount which will reduce its taxable income as well as the increase the size of the company at less cost.

While working as a merger and acquisition analyst in the future I will try to utilize all the concepts which I learnt in the class and help to generate value for my company as well as myself.