It is 2018 and businesses have been making mergers and acquisitions left, right and center. There have been so many such deals in 2018 than ever before as experienced investment banker Anil Chaturvedi explains. We have seen some big names in the business sector merge with equally big businesses. Some of the prominent deals include Times Warner linking up with AT&T and AOL joining forces with Yahoo. Despite all these mergers and acquisitions, many people still do not know what the deals are all about. Mergers and acquisitions is a name that is thrown all around, but few really understand its meaning and why it is even necessary for businesses to get into such deals. Anil Chaturvedi has used his experience in the investment banking sector to explain what it means to be in a merger and acquisitions.
Mergers and acquisitions are good for business because of one thing; they help the companies increase their market value as well as create wealth for shareholders. There would be no other main reason why a business would agree to such a deal unless it is going to strengthen its capacity in business. There are however other reasons which push businesses to get into such deals.
Lowering the cost of supply is another reason. If you follow how the big brands in the industry work, you will realize that they work alongside other companies, which supply them with parts to build their devices. There are companies which supplement the operations of such companies. A good example is Apple which has a number of companies which supply them with different parts to make their Apple devices. When a company wants to lower the cost of doing business with such companies, they will opt for a merger or acquisition.
About Anil Chaturvedi
Banker Anil Chaturvedi is an experienced investment manager. He has spent his entire career in the industry. He has so far worked for over 40 years in this industry and is still active in the operations of various entities in the industry. Currently, he is working as the Managing director of Hinduja Bank in Switzerland. Previously, he was working with Merrill Lynch for 17 years.