Value Creation in Mergers and Acquisitions

Value creation in mergers and acquisitions (M&A) refers to the process where companies combine to enhance their overall worth. This can happen through various means, such as achieving greater market share, eliminating competition, sharing resources, or pooling expertise. The goal is to generate more revenue or reduce costs, thereby increasing profits. Successful M&A should ideally create more value than the individual companies could achieve on their own. This can benefit shareholders, employees, and customers, but requires careful planning and execution to realize those benefits.