There have been countless mergers over the years in the business world. Sometime companies buy out smaller companies or struggling companies and sometimes the two companies decide to work together to create a more powerful enterprise. We have seen several of these occur this year alone. These mergers and acquisitions show no sign of slowing down and we can expect this to occur for many more years to come.
What is the Difference Between a Merger and An Acquisition?
There is one key difference between an acquisition and a merger and that is whether or not the companies both want to make the deal. When there is a successful merger, both companies are interested in working together. There could be several reasons for this but a common one is that the companies want a larger market share and decide that they would prefer to work together than against each other. In an acquisition, one company may not be interested in working with another company but they are forced to because a larger company buys out their company. These types of changes are not always welcomed and sometimes that does not work in their favor but with the right management they can work fine.
What Companies Have Come Together in 2014?
A quick Google search will show researchers just how many companies have merged together this year. All of these mergers are published in some daily publications online but not all of them make major headlines. If you are not a part of the business world, you may not even know of some of them but they can all impact your consumer life, whether you know it or not. This can affect minor price changes and products available on the market. There are really too many to mention all of them but some companies that commonly merge with smaller firms are Google and Facebook. There were talks of a Sprint and T-Mobile merger earlier this year but it has not occurred and seems as though it may not happen at the moment. That does not mean it will never happen because in the business world, things are always changing, but for now things will remain the same. There are new discussions every day between companies. Sometimes it works out and other times they decide not to merge.
What Types of Mergers and Acquisitions are on the Rise?
According to John Studzinski, Blackstone executive, there will be rise in technology company acquisitions and mergers. Technology has been on a steady rise in the last several years and the industry shows no sign of slowing down. With this consistent climb, there have been many new companies who have started and jumped on the bandwagon. While many companies are comfortable with where they are in the market, some may be interested in joining forces to conquer bigger fish. There may also be some smaller companies that the bigger companies would like to acquire. Companies that may do this would be large ones like Google. Technology companies are on the rise and that means there will be more mergers and acquisitions in the next year. This year has already been a big one for the industry but just like the market, the trend shows no sign of slowing down.