What is Mergers and Acquisition (M & A)

Consolidation of businesses is what Mergers and Acquisitions (M&A) are referred to as. When comparing the two concepts, Mergers refer to the joining of two businesses to create a single entity, whereas Acquisitions refer to the taking over of one business by another. Multinational corporations may decide to invest directly in wholly-owned subsidiaries in order to conduct extensive production and marketing operations abroad. This sort of entry leads in a corporation directly owning manufacturing or marketing subsidiaries abroad, in contrast to the ways of entry previously stated. Because they are actually “in” the market, businesses are able to compete more fiercely there. However, this approach calls for a substantially bigger investment because the subsidiary is in charge of all marketing initiatives abroad. It's also a risky proposition because it necessitates a thorough awareness of local business practices and customs. Several countries mandate that domestic business partners own at least a portion of all commercial enterprises. Joint ventures might be international in scope. This happens most frequently when business partners work together to conduct business in a global area.

Market Entry Strategies

Oindrila Chakraborty (J.D. Birla Institute, India)