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INTRODUCTION

Organizations market competition basis is due to change in market environmental force which leads them to re-think their organizational design. Companies’ executives consciously engage in strategy to expand or improve the business. In this regard mergers and acquisitions can be viewed as responses to changing market circumstances. Combining business is a critical part of the fabric of doing business in a free market economy. These combinations of business are penetrated in the global business community. Nowadays watching news, reading business section of newspaper and surfing the net, it is not hard to sweep the combining or taking over of the companies.

Companies are hybrid institutions: it is hierarchal but embedded in the markets today; there exists an institution that combines the two. Private organizations are remarkable innovations in the past two centuries. Corporations are crucial to the economy. Shift in market conditions including technology or trade, will alter the boundaries of the corporation and force them to merge. Companies are servants to market forces not their overlords. If they don’t meet the terms of the market competition they will disappear.


Mergers and acquisitions are really important matters and have a great deal of impact on the company. It has a great deal of responsibility. In certain cases, mergers and acquisitions are so large that they drive a complete transformation of the companies coming together and creation of new company will be an essential cause. The important thing is that it is not occur on its own but need a great planning and effort to make it successful. Therefore companies achieve maximum success not only

engaging one part of the business but all affected parts of the business in this process. It consumes time and hardworking. Transactions can be costly and complex. So it a very valuable decision process for the company because if it is not executed properly it can be a disaster.

Mergers...