merger theory

Merger theory explores how and why companies combine to form a single entity. It examines the strategic motivations, such as gaining market share, reducing competition, or achieving cost efficiencies. The theory analyzes the potential benefits and risks of merging, including increased power, resource pooling, and possible cultural clashes. It also considers the impact on stakeholders like employees, customers, and shareholders. Overall, merger theory helps explain the strategic reasoning behind corporate consolidations and how these combinations can shape industry dynamics and organizational performance.