Which theory do you think better explains the motivations and effects of M A? Name your reasons?

Economic synergies.

Theory: The theory of economic synergies is one of the theories that explains the motivation of corporate M&A. This theory holds that there are economies of scale in the company's business activities.

Usually before the merger of companies, the company's business activities can not meet the potential requirements of achieving economies of scale, so through horizontal, vertical or mixed mergers and acquisitions can obtain economies of scale, economies of scale are due to the indivisibility of certain resources, through corporate mergers and acquisitions can complement each other's advantages, achieve economies of scale, and achieve business synergies. The operational synergies of economies of scale can manifest themselves in many ways.

The so-called economic synergy effect is the effect of 1+1>2. After the merger, the overall benefit of the enterprise is greater than the arithmetic sum of the benefits of the two independent enterprises. It refers to the impact of mergers and acquisitions on the overall benefits of the company's procurement, production and sales environment by expanding economic scale and reducing competitors.

Operational synergy mainly refers to the changes in the efficiency of the production and operation activities of the enterprise and the benefits generated by the improvement of efficiency. Economic synergies.

Extended information: 1. Enterprise mergers and acquisitions The theory holds that corporate mergers and acquisitions.

It is an important part of the self-development of enterprises in modern economic life, and it is a market economy.

Under the conditions of enterprise capital operation.

In an important aspect, through mergers and acquisitions, enterprises can effectively achieve rational allocation of resources, expand the scale of production and operation, achieve synergies, and reduce transaction costs.

And it can increase the value of the enterprise. Enterprise mergers and acquisitions refer to the control and influence of the target enterprise by purchasing the equity or assets of the target enterprise, so as to enhance the competitive advantage of the enterprise and realize value appreciation. At present, mergers and acquisitions have become one of the important ways for enterprises to expand and grow externally.

2. The value creation theory of mergers and acquisitions.

Whether it's organizational fit-M&A performance, or the process school, the research so far has certain limitations. However, some current studies on resource flow and knowledge transfer (from the perspective of resource view and enterprise epistemology, this is synergy) can make up for the shortcomings of the two to a certain extent, for example, TSAI has studied the conditions for resource flow and knowledge transfer between existing departments and new departments (created or acquired by themselves) within multinational corporations, that is, they need to establish a strong relationship between them and form a relationship network, that is, to create social capital that is conducive to resource flow and knowledge transfer.

The motivation of mergers and acquisitions is the maximization of profits or interests, and mergers and acquisitions often produce large-scale effects, such as competitiveness, resources, energy consumption, material utilization and so on.

Summary. The motivation of Hello M&A refers to the motivation and reasons of M&A, and the effect of M&A is the effect and reaction that M&A can achieve.

The former is the expectation of both parties on the outcome of the merger, and the latter is the desired result of the merger. The former is why the merger and acquisition, and the latter is what happens after the merger. Thank you very much for your trust, please do you have any other x09s

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What is the relationship between M&A drivers and M&A effects?

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The motivation for the merger and acquisition refers to the motivation and reasons for the merger and acquisition, and the effect of the merger and acquisition is the effect and reaction that the merger can achieve. The former is the expectation of both parties on the outcome of the merger, and the latter is the desired result of the merger. The former is why the merger and acquisition, and the latter is what happens after the merger. Thank you very much for your trust, do you have any other questions about x09?

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What are the main theories of the motivation for corporate mergers and acquisitions? From the perspective of synergies, it can be subdivided into several types.

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The motivation for corporate mergers and acquisitions can be explained from a number of theories, including: 1Resource-based theory:

This theory holds that the main motive of corporate mergers and acquisitions is to obtain the resources of the other party, such as technology, brand, patents, channels, etc. 2.Competitive Advantage Theory:

The theory is that mergers and acquisitions can expand a company's market share and competitive advantage, thereby achieving higher profit margins and growth. 3.Cost-based theory:

The theory is that corporate mergers and acquisitions can reduce costs and improve efficiency through economies of scale. 4.Social Capital Theory:

The theory is that M&A can leverage the social network and reputation that the other party has already established to enhance its own social capital. From the perspective of synergies, corporate mergers and acquisitions can be subdivided into the following aspects: 1

Synergistic lead knowledge effect: It refers to the ability of two companies to share each other's technical resources after the merger, so as to improve production efficiency and product quality. 2.

Brand synergy: refers to the merger of two companies that can share each other's brand awareness and loyalty, thereby increasing market share and brand value. 3.

Channel synergies: The merger of two companies allows them to share each other's sales channels and distribution networks, thereby increasing product sales capacity and market share. 4.

Talent synergy: refers to the merger of two companies can share each other's human resources, so as to improve the quality of employees and innovation ability.

Summary. The efficiency theory holds that corporate M&A activities can bring a potential incremental social benefit, and undoubtedly improve the efficiency of the participants in the transaction. The basic logical order of efficiency theory is:

Efficiency Differences M&A Behavior Improving Individual Efficiency Improving the efficiency of the entire social economy. This theory contains two basic points: (1) the occurrence of mergers and acquisitions is conducive to improving the operating performance of management; and (2) corporate acquisitions will result in some form of synergy.

The policy orientation implicit in this theory is to encourage corporate mergers and acquisitions.

What is the core idea of efficiency effect theory in M&A positive effect theory?

Hello, I am inquiring for you, please wait a while, I will reply to you right away Efficiency theory suggests that corporate mergers and acquisitions can bring a lot of potential incremental benefits to society, and undoubtedly improve the efficiency of the participants in the transaction. The basic logical sequence of efficiency theory is as follows: efficiency differences, mergers and acquisitions, improving the efficiency of the trapped individuals, and improving the efficiency of the entire social economy.

This theory contains two basic points: (1) the occurrence of mergers and acquisitions is conducive to improving the operating performance of management; and (2) corporate acquisitions will result in some form of synergy. The policy orientation implied by this theory is to encourage corporate mergers and acquisitions.

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Answer]: a, b, c, e

The effects of mergers and acquisitions are: Achieving synergies. Achieve strategic restructuring and diversification. Access to special assets and channels. Reduce costs.