Many times in the news, we hear about “mergers and acquisitions.” The question is, do we really understand what this term means? In the first half of 2018 as has also been in recent years, the number of mergers and acquisitions which have been happening are many. Insights from an experienced investment banking executive Anil Chaturvedi shows that there has never been another year like 208 in terms of mergers and acquisitions. They have been happening all over the place. Some of the prominent merges and acquisitions include Yahoo merging with AOL, AT&T merging with Time Warner and other prominent deals are on the way.
Unless you have years of experience in the investment sector, you might never get to know what the term is all about. However, through the information shared by Anil Chaturvedi, we can tell what the term means in details.
The main reason why companies would choose to merge is for them to increase their value. Shareholders will hold more value after such deals. This goal should be the main reason why a business choses to merge. If there is no wealth or increase in value, then such a deal is worthless. Mergers are all about making the company better and enriching the shareholders. However, this is not the only reason why a company may choose to merge. Other reasons may include lowering the cost of supply.
In many cases, you will find that the giant companies do not operate on their own. They have a number of companies which they partner with to deliver the end products. For instance, a company like Apple works with others like Analog Devices Inc. and Qualcomm, which provide them with parts to build the Apple phones and watches.
About Anil Chaturvedi
Anil Chaturvedi is a banker with experience of four decades. He has worked with leading international banks in different countries. Currently, he is working for Hinduja Bank in Switzerland as a managing director. He has worked in private and investment banking where his role has mainly been corporate advisory. He is one of the people who are depended on to make the financial sector seamless in its operations.