Why do Companies Continue with Mergers and Acquisitions when so many Fa

Why do Companies Continue with Mergers and Acquisitions when so many discover?The phenomenon of mergers and acquisitions (M&As) triggers an arrayof opinions and viewpoints. Often it is a strategy that is seen as aperfect way of achieving growth. It is by no means an organic or inseparable route to success, but has tended to be a quick and easy way ofincreasing an organisations size and power. However although there havebeen waves of popularity and success since its introduction in the1960s it has also suffered criticism due to the number of failures ithas accounted for. Despite the strong suggestion that this strategyhas been the architect for many an organisations downfall there stillcorpse a propensity in the current business environment for managersto adopt it. Throughout this essay I am going to examine some of theareas that beg off M&As volatility and attempt to discover whymanagers are persevering with the strategy when it is seeminglyflawed.Over the last few decades it has plump increasing apparent that theeffect of mergers and acquisitions is not as beneficial as oncethought. When the growth strategy was pioneered in the middle part ofthe nineteen hundreds it was looked upon as a way of creating anempire across different sectors and countries. Many experiencedmanagers were sucked into the strategy, only having eyes for theapparent synergistical and positive affects of M&As. Although overthe side by side(p) years there has been many success stories concerningM&As, when the big picture is examined it displays a more ugly sideof the phenomenon. Hodge (1998) discovered that in the go-go 80s,37% of mergers outperformed the average shareholder return in thatperiod in the fi... ...nal, Autumn Customer text-section 2, topic 11.- Kieran et al (1994) Planning the deals that generate value and gain gain, Mergers and Acquisitions, March-April Custom text, topic 12.Journals- Doitte S & Smith G (1998). The morning after (avoiding mistakes in acquisition s and mergers). Winter v63 i2 p32(8).- Davenport, T (1998). The Integration Challenge (managing corporate mergers Management Review.- Heitner M (1998). The thorny business of merging rival firms, Mergers and Acquisitions.- Hodge, K (1998), The art of the post deal (outcomes of mergers). Management Review.- Price, A & Sloane, J (1998). Global Designs Tough Challenges for- Acquirers. Mergers and Acquisitions..- Whipple J & Frankel R (2000), Strategic Alliance Success Factors. The Journal of Supply Chain Management.