what's the added value of merger and acquisition ?

Question

can increase performance of the company ?

Answer 1

Yes, that's one of the advantages. The potential synergies of M&A are:

1. Boost profit margins by increasing revenue while cutting costs (e.g. LOJ and First Life)
2. Generate rapid growth in a business
3. Increase the size of a company to make it more competitive in the market (First Global and George & Branday, PCFS and MSMB)
4. Geographic Expansion (DB&G and Billy Craig Finance & Merchant Bank Ltd., Nestle and Cremo Ltd.)
5. Acquire technology (Microsoft and Hotmail)
6. Vertical integration into supplier or customer businesses (Alcan (bauxite mining) and Pechiney (aluminum can production))

If you're also interested in the disadvantages, you can find them at the link.