With the development of social economy, the competitions between the enterprises become more and more fierce. In the market economic ages, the mergers and acquisitions between companies are very common. The mergers and acquisitions are a way which company can get more rights to control another company by buy shares and funds. Also there are lots of problems in mergers and acquisitions such as the element of risk and whether the mergers and acquisitions are helpful to economic market. This essay will make a statement about the advantages and disadvantages of mergers and acquisitions. The approach in researching will be some information on internet, some books, newspaper.
Generally with mergers and acquisitions, company can develop themselves’ scale. Mergers and acquisitions also can make scale developing quicker and quicker. J.G. Williams said “the purpose of mergers and acquisitions is relatively complemented into advantages” (J.G. Williams 1980). One reason is that each product can be circulating to each area naturally. For example, GELLY HOLDING Group made mergers and acquisitions to VOLOV. GELLY HOLDING Group’s products can be injected into the overseas market, and they also can let the low level products of VOLOV injected into Chinese market. The second reason is that mergers and acquisitions can get many experiences from the company which had been done mergers and acquisitions. As same as the example that GELLY HOLDING Group made mergers and acquisitions to VOLOV. Company makes analyzing about the case which had been done not only succeed or failed so that they will get more experiences in operation. Another reason is mergers and acquisitions can reduce a competitor in market. For example, YOUHAO Group from China made mergers and acquisitions to JUBAIDE from Xinjiang Province. Company gets more competitive power in market so that the shares’ price will increase to a higher level in stock market. For the customer, they will have more confidence and loyal...
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