Merger and Acquisition

The current trend is acquiring and selling the business as a whole. There are several reasons for it. They are to reduce the competition in the market by acquiring the same kind of business and to buy it at low price, the companies which are in losses. The major benefits are that they can reduce cost of operations, wages and other expenses. By incorporating a new company, both the companies will get merged just to form a new business line in the industry. While acquiring they can compensate to the selling company by cash or shares.