In a broader sense, the mergers and acquisition market is considered a facilitator of corporate strategy. It adds value to shareholders by increasing market power, allowing diversification of product portfolio, improving economies of scale, facilitating entry into new geographic markets, and acquiring a skilled workforce.
Merger
A merger occurs when two companies merge to form a new enterprise altogether. None of the companies exist independently after the merger.
Many companies have AI industries. The Indian state of Andhra Pradesh, which had a shortage of teachers, used AI technologies to bridge this skills gap and successfully trained more than 500 teachers in the last year.
Acquisitions are a situation in which one business entity purchases a part or all of the assets of another. Mergers and consolidations, which are processes through which two companies combine, are another way of achieving this goal.
Federal Trade Commission
The FTC ensures that transactions between competitors, such as asset purchases, mergers, and share acquisitions, comply with the antitrust laws of fair competition and are not anti-competitive. Although often controversial and undesirable in some industries, mergers and acquisitions between competing companies are sometimes necessary to maintain and grow market share.
Alabama Securities Commission
The Securities and Exchange Commission (SEC) is the agency responsible for overseeing this often very complex transaction. The SEC ensures that a purchase is not via illegal activities such as insider trading, improperly devalued stocks, or other inappropriate conduct.
