Economics – Growth and survival of firms | e-Consult
Growth and survival of firms (1 questions)
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Answer: Mergers and acquisitions (M&A) can be a powerful tool for firm growth, offering several advantages but also posing significant risks. The success of an M&A depends on careful planning, due diligence, and effective integration.
Explanation:
Advantages of M&A:
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Disadvantages of M&A:
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Conclusion: M&A can be a valuable growth strategy, but it is not without risks. The success of an M&A depends on a thorough assessment of the potential benefits and drawbacks, careful planning, and effective integration. Firms must be realistic about the challenges involved and prepared to invest the necessary resources to ensure a successful outcome. The regulatory environment also plays a crucial role in determining the feasibility of M&A deals.