Evidence, argumants and evaluation on whether mergres and acquisitions Essay

Evidence, argumants and military rank on whether mergres and eruditions incraese shareholders wealth - Essay ExampleThe following sections of the paper discuss the effects of Mergers and acquisitions on the shareholders wealth.Mergers and acquisition have conduct to the increase of shareholders market presence in certain industries according to Brigham and Houston (2009). This has also led to effective sales and marketing associations by the merging companies. As a result, this happens to increased wealth of the shareholders. Mergers and acquisitions oftentimes lead to greater market presence of the companies involved (Fleuriet 2008). Higher market shares that result from mergers and acquisitions often lead to increased purchasing ability and control over suppliers as suggested by Bruner (2004). When an organization buys a ingathering in higher volumes than previously, the purchase cost becomes lower making the caller-up become more determine competitive. This has the potenti al of attracting greater sales and, therefore, higher measure out to shareholders.Mergers ad acquisitions may lead to improvements in company operations especially in the case of manufacturing companies as suggested by DePamphilis (2011). Therefore by increasing facilities done mergers and acquisitions, the company raises its capacity to manufacture more products or higher quality products. The company as headspring has its credibility increased which positively increases the shareholders wealth (Maddiganand and Zaima 1985). Mergers and acquisition often lead to symbiotic relationships between the devil companies. As a result, the two companies tend to support one another, which in return helps the shareholders realize greater value from their investments. Mergers and acquisitions combine the operations of the two companies leading to higher sales capable of supporting their simultaneous higher budgets hence raising the wealth of the shareholders (Cartwright and Schoenberg 2006 ).In some cases, mergers and acquisitions may not add value to shareholders wealth. This happens for example when management of one