M&A: Strategic Takeovers

M&A: Strategic Takeovers

Intuition Publishing Pty Ltd
Updated Sep 24, 2020

A strategic merger involves the acquisition of a target company, often a competitor, in order to generate synergies, take advantage of economies of scale, and give increased market share to the merged entity. Here we discuss the motivations behind strategic takeovers and look at how companies bootstrap earnings through such methods.