According to Thomson Financial, Institute of Mergers, Acquisitions, and Alliances, more than 40,000 mergers and acquisitions were recorded worldwide in 2011. Horace Nalle, Head of Legal, Communications, and Public Affairs for Merial, a maker of flea and tick and other products for pets, has participated in a number of high-profile mergers and acquisitions throughout a career that spans 30 years. He recently shared his thoughts below on some of the common reasons why a company would want to merge with or acquire another company.
Ability to Learn New Capabilities: Some companies may acquire or merge with a competitor in order to adopt their core capabilities and business.
Diversification: When one company merges with or acquires a related business, this can create synergies throughout the organization. It can also reduce some of the competitive, economic, or technological risks that may be associated with a merger or acquisition.
Increased Opportunity for Greater Market Share: Larger firms are better able to negotiate deals, attain larger economies of scale, and expand their services and distribution network.
Horace Nalle earned his Bachelor’s degree in Government from Harvard University in 1978 and his Juris Doctor from the University of Pennsylvania Law School in 1982. He is a member of the Pennsylvania bar.