How Form 8865 Acquisitions 2023-2024

Hello everyone, welcome back to Case Studies with the Biz Doc. This week, we will be discussing mergers and acquisitions. I will be sharing three case studies to explain why companies engage in mergers and acquisitions. Many of these topics were prompted by your inquiries, so thank you for reaching out. One of the questions that came up was about the rumor of Disney and Apple joining forces, and why sometimes mergers don't materialize. In the past, we discussed the failed attempt of Yahoo and Microsoft to merge, and there are various reasons why mergers may not happen. However, in this episode, I want to focus on giving you practical information that can be useful for your growing company or for those involved in a growing organization. First and foremost, let's address why companies merge in the first place. The purpose of a merger is usually driven by the desire to achieve growth. There are different ways to accomplish growth, such as gaining a larger market share. An example of this is when two wireless companies, selling the same type of product, merge to increase their market dominance. However, from a consumer perspective, this type of merger can have downsides, as it may lead to reduced price competition and innovation. Therefore, governments often scrutinize mergers within the same industry to ensure fair competition is maintained. Another way companies seek growth through mergers is by acquiring more products or technology. For instance, Nokia, a mobile phone manufacturer, acquired a GPS company, aiming to enhance their products' capabilities. This type of merger allows companies to offer more advanced and differentiated products, leading to increased sales. Additionally, companies may engage in vertical integration, wherein they purchase their suppliers or are purchased by their suppliers. This strategy is often adopted by large companies. For example, Boeing, an aircraft...