What are the main purposes of mergers and acquisitions?

The purpose of a company pursuing mergers and acquisitions (M&A) is not simply a corporate transaction, but a strategic choice for long-term growth and strengthening competitiveness.

Especially for small and medium-sized and venture companies, M&A is used as a realistic means that simultaneously considers the survival and development of the company.

From the seller's perspective, M&A becomes a choice to maintain corporate value and continue business when limitations occur in business operations due to aging executives, lack of successors, growth stagnation, etc.

Rather than simple closure, it functions as a way to transfer business and employment to entities that can acquire the company.

On the other hand, from the acquirer's perspective, the main purposes are expanding market share, strengthening competitiveness, securing technological capabilities, and business diversification.

By acquiring a competing company or a company with technology, growth can be promoted in a short period, and effects of cost reduction and productivity improvement due to scaling up can also be expected.

Ultimately, M&A can be viewed as a management decision that comprehensively reflects the company's current situation and future strategy.