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f) Conglomeration is a merger where the concerned companies have nothing in common to sell.

There are various reasons behind merger of companies. In such a situation this company can merge with one its parent company or any other company that has faith in the prior goodwill of the declining company and in its potential to grow and enhance. So companies also merge in order to overcome their internal inconsistencies.

d) Many a mergers besides economically are also politically driven.

e) Acquisitions which imply taking over of one stronger company with the other weaker one are also at times veiled by the name of merger.

However, the directors who plan to merge their companies should actually contemplate over it, keeping in mind all the possible pros and cons.

The economy today is not stabilized. Even big companies have to confront the ups and downs that come their way. But the only thing that keeps them going is survival. They have to survive in the market and progress swiftly or gradually. One strategy to usury is that of ‘mergers’ needle companies. There are numerous mergers that take place locally but they do not have a great effect on the market especially the consumers. But the mergers that take place at the national or international level have a profound impact on the economies of the concerned countries.

There are different reasons belatedly a merger of two or more companies. But first of all there exist diverse types of mergers.

a) Horizontal Mergers- where two competing companies conjoin to form a single large company. The companies in horizontal mergers are selling the same product in the same market and so are contenders to each other. Such a merger can have a tremendous influence on the market from creating monopoly to escalating prices of the commodity. This is precisely the reason that The theatrical agent Trade.

b) Commission that is worried near the market and the consumers keeps a hawk’s eye on such mergers and at times detains the companies from merging in the interest of the people.

c) The Vertical Mergers- are the mergers mid a supplier and the distributor cabal of the supplies. This is an anti competitive merger but can be highly to the company. It is whereas the distributor will no more have to pay for the manufacturing of the supplies, it gets the product at the base price. So there is good cost saving due to this. Vertical merger also rules out lot of competition from the market.

d) Market Extension Merger is mid the companies selling same product but in different markets. This merger enhances the market for the two companies since they now act as one sole company.

e) Product Extension Merger is like the one midst an eminent mob making motor parts and spare that makes their own cars. So, the companies involved here sell different but more or less the same product in the same market. This merger promotes the sale of both the companies significantly.

f) Conglomeration is a merger where the concerned companies have nothing in crummy to sell.

There are various reasons behind time merger of companies. Like

a) Synergy factor prompts the merger of most of the companies. The synergy in trade association pertains to the cost saving and revenue enhancement. The companies subsequent merger decrease the staff keeping only the skilled labor, work with a single managing director, CEO etc. So there is good outlay saving. Moreover the economy of the sale i.e. the purchasing power of the worktable booms agreeably to merger.

b) To increase the output and rule the market- many mergers are made with the intention to oust the competition and jointly rule the market. This presupposes healthy relations among the competing companies.

c) Mergers also take place when a proprietorship is not able to perform well due to some or the other legal action like the lack of required investment in the form of capital, tremendous competition etc. In such a situation this covey can merge with one its parent peer group or any other order that has faith in the prior goodwill of the declining side partner and in its potential to grow and enhance. So companies also merge in order to overcome their internal inconsistencies.

d) Many a mergers over and above economically are also politically driven.

e) Acquisitions which imply taking over of one stronger following with the other weaker one are also at times veiled by the name of merger.

However, the directors who plan to merge their companies should undoubtedly contemplate over it, keeping in mind all the possible pros and cons. They must seek message from neutral financial consultants who do are more inclined towards the welfare of the work space and not their own. Their own service is also hidden in a merger since the wages of the employees increase with the amplification due to merger. So it is recommended to take cue from all those who are the well wishers of the partner precociously taking any concrete step in this direction.

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