Baba asked in Business & FinanceInvesting · 1 decade ago

On which stage of industry life cycle should merger & acquisation takes place?

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  • 1 decade ago
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    M&A activity can take place pretty much any state of an industry life cycle. Early on, M&A can help a company gain size and reduce competition. Midway, M&A can help a company obtain economies of scale & scope therefore improving efficiencies which would result in better margins. Late in the life cycle, M&A activity can help a company acquire a newer technology to remain competitive or remain the leader. M&A activity can occur at any stage as long as it fits with your company's strategy as about half of M&A do not result in increased shareholder/stakeholder value.

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