The Impact of Mergers and Acquisitions on Market Competition: GoodFirms Survey

ABSTRACT: 

If you are wondering how a few companies are winning out, understand that it is merely because they rely on and work on strategies to succeed. Such strategies can include:

• A short-term or long-term outlook.
• Investing effectively.
• Conventional or non-conventional approaches to winning the competitive game.

However, timing and finance are the two critical elements for any strategy to work. Several businesses plan for mergers and acquisitions (M&A) in pursuit of competitiveness, future economic potential, business growth, and sustainability. 

Primarily oriented towards growth, mergers and acquisitions create shareholder value - where the acquirer's business is made more valuable. The combined force is more than the individual business. Mergers and acquisitions have always impacted the businesses undergoing the process and the market as a whole. While several risks are associated with M&A, they offer higher growth probabilities. Looking beyond the quick hit and the short-term cost cutting, the focus is always on the long-term value addition.

While there are several mergers and acquisitions that were big hits (like the biggest telecom merger - Vodafone and Mannesmann, that created an extensive wireless market in Europe), a few of the deals were significant disappointments too (like the Nokia and Microsoft deal, which failed badly due to sudden industry developments). 

So, here we are with a survey to understand more about the purpose, requirements of mergers and acquisitions, challenges, factors to consider, and the impact of these deals on market competition. GoodFirms’ survey aims to research the benefits and risks of mergers and also attempts to learn how the managers, executives, and boards think about M&A, approach their strategies, and create a positive impact on market competition.

The success of a business is determined by a number of factors. A larger market share and diversified presence around the market are significant factors that ensure the success of an enterprise. While businesses strategize to improve their market share through all the necessary steps, opting for an appropriate merger or acquisition can help achieve the aim promptly. 

It must, however, be understood that M&A deals are not always a cakewalk. The legal and endless procedures also pose various risks that can stop the deal from being a success. While M&A deals are highly potent to offer faster growth, they also face challenges and severe risks. 

This survey by GoodFirms is an attempt to get insights into the various factors associated with M&A deals. It aims to highlight the purposes and benefits of a merger or acquisition while also discussing the risks associated with the deal. Also, it is an attempt to understand the impact of an M&A deal on market competition.

Mergers and acquisitions are an integral part of any industry. These deals have been made worldwide for specific purposes. As of mid-year 2024, nearly 13,176 M&A, and in 2023, approximately 40,000 mergers and acquisition (M&A) deals were completed worldwide (1).

Post-pandemic, the world saw a boom in merger and acquisition activities with the hope of stabilizing the economies. However, the M&A deal values decreased in the year 2023. (2)

Reasons like high inflation, rising interest rates, and geopolitical uncertainties are cited for the fall in the M&A deals.

However, the mergers and acquisitions activity is expected to bounce back by the year 2024 due to favorable market conditions.(3)

The advancement in technologies like AI, the rising importance of environment and regulatory changes will be the main contributing factors for the rise in M&A activities.

The survey, which had around 525 participants, aimed to gather views on the various aspects of Mergers and Acquisitions(M&A).

Starting with the most basic question, the survey attempted to understand the industry that most witnessed the mergers and acquisitions. 

A whopping 87.9% of survey participants voted for IT,  the industry that has the highest number of mergers and acquisitions. With nearly 118’000 M&A deals since 1985, the IT industry has had nearly 5000 billion USD (4).

While 58.2% of the surveyed businesses said that the Banking & Finance sector  witnessed the highest number of M&A deals, 52.9% of them said that Ecommerce has the highest number of M&A opportunities.

The telecom industry sees the highest number of M&A deals, according to 39.4% of the survey participants, whereas 35.3% of the survey respondents indicated that the Healthcare sector has a large number of megamergers.

Mergers and Acquisitions (M&A) can be an overwhelming process for the associated parties. While there is no “one size fits all” formula that can ensure the success of the mergers or acquisitions, there are certain factors that can help businesses for successful dealmaking. Here, GoodFirms attempted to survey these critical factors that works for such dealings. 

74.3% of the survey respondents said that businesses would opt for a merger or acquisition to promote the growth of business.

Growing the business is the ultimate aim of business owners. Opting for a merger or acquisition is one of the many ways to achieve growth. Acquiring a certain segment of the industry can help a business grow at a much higher rate than would otherwise be less.

Acquisition of a smaller company can help a business grow faster with access to newer geographical markets, customer base, and expertise. The access to unique assets and the increased customer base can ultimately lead to business growth.

The ExxonMobil acquisition of Pioneer Natural Resources Company is an excellent example of gaining access to an area and promoting the growth of the business. The acquisition deal upstreams the international energy and petrochemical company’s portfolio by doubling its Permian footprint.(6)

43.2% of the survey participants said that building a portfolio of products and services can be the motive behind opting for an M&A deal.

With a successful merger or acquisition, businesses can gain access to newer technologies, assets, and a wider customer base to enter new markets. These deals can help businesses quickly have a hold over a wide range of products and technologies that might otherwise be time-consuming or costly to develop on their own.

M&A strategies can promote access to a broader customer base and provide opportunities for cross-selling by introducing new products and services to existing clients from the expanded portfolio.

The acquisition of ImmunoGen, a biotechnology company developing antibody-drug conjugate, by AbbVie, a pharma company developing several key therapeutic products, was completed in the year 2024. The deal is an attempt from AbbVie to build a portfolio that allows them to have a share in the field of Oncology.(7)

According to 28.4% of the surveyees, businesses go for a merger or acquisition to overcome financial inefficiencies.

Acquisitions and mergers can help businesses overcome their financial inefficiencies. Any business can face a cash crunch. Merging with another business can easily help overcome financial instability with improved cash flow and liquidity.

Vertical acquisition with a vendor or distributor can be a simplified deal that reduces supplier costs or shipping costs, respectively. These acquisition deals can significantly eliminate a chunk of costs to help overcome financial inefficiencies.  

The acquisition of Subway, one of the largest restaurant chains in the world, by Roark Capital which was recently closed, is an example of acquisitions that can be done to overcome financial inefficiencies. (8)

33.8% of the survey participants mentioned establishing synergies as the major reason behind opting for mergers and acquisitions.

Establishing synergies, be it soft or hard is one of the most common reasons that promote a merger or acquisition. The participant companies in a merger or acquisition combine together their strengths and resources improving their overall financial capabilities. 

These deals also aim to combine processes by eliminating the need for duplicated resources, which will help to reduce costs and improve profitability. Minimizing the need for resources for some business processes leads to creating revenue synergies. Realizing economies of scale is another way of establishing cost synergies improving the profitability of the business. 

The deal of ExxonMobil, a regional dealer of kerosene in the U.S, with Mobil to create Exxon Mobil Corporation is a classic example of financial synergies created through M&A.(9)

Increasing the market share is a major reason for opting for an M&A deal, asserted 66.2% of the surveyed businesses.

Mergers and acquisitions can be a great option for companies that are striving for market dominance. When looking to enter new geographical markets, joining hands with an established local business in that particular market can help in an increased market share.

With access to more resources and a wider customer base, businesses can significantly improve their market share. Moreover, the diversified offerings strengthen their market position.

For example: Johnson and Johnson acquired Shockwave Medical in the year 2024. The deal is an attempt from Jonson and Johnson to strengthen its position in the healthcare sector.(10)

About 39.2% of the surveyed businesses said that eliminating competition is a reason behind opting for a merger or acquisition.

Acquiring or merging with a company from the same sector can always be an attempt by the acquiring company to eliminate any future competition. 

Acquiring a company also results in eliminating the possibility of someone else from the industry gaining a unique asset. Thereby, enhancing the competitive advantage. In either, businesses tend to remove any potential competition that may hamper their position in the market. Facebook’s acquisition of Instagram, Google’s acquisition of Fitbit are a few top examples that proved that M&A can be signed to eliminate competition.

Over 47% of the survey respondents said that value creation can be the motive of a merger or acquisition.

Mergers and acquisitions aim to create value for both parties, along with the shareholders of the participating companies.

Generally, when companies undergo an M&A deal, it is expected that their value will increase by establishing synergies. This means that the newly created value is higher than the combined values of individual businesses. Moreover, M&A agreements also boost the share prices, creating value for the shareholders of the companies.

Diversification of the business can be a factor in promoting mergers and acquisitions, according to 54% of the survey participants.

Diversification is another purpose that might promote a merger or acquisition. The urge of a business to diversify its offerings and earn new customers while keeping the existing customer base satisfied can motivate businesses to opt for merger or acquisition.

Softude Infotech mentioned, “Mergers and acquisitions (M&A) do offer faster growth opportunities as they allow companies to quickly expand their market share, diversify their product lines, and enter new markets. By acquiring established businesses, companies can bypass the time and resources required to build these capabilities organically.”

Acquiring or merging with a well-established business that offers products or services can be easier than starting from scratch in that particular field. 

While there are several reasons for a business to opt for a merger or acquisition, the benefits that these deals offer also fuel the rise of mergers and acquisitions. The participants of the GoodFirms’ survey shared the benefits of a merger or acquisition

While 87.8% of the businesses said the access to newer markets is a benefit of an M&A deal, 83.1% of them said that these deals can result in increased revenue.

“M&As can facilitate entry into new geographic or product markets, allowing companies to expand their market presence. This can increase competition in previously untapped or underserved markets.” –Grawlix Software Private Limited

According to 68.9% of the survey respondents, mergers and acquisitions can boost the efficiency of the business, whereas 67.3% of the respondents said that it can help expand the product portfolio.

65.4% of the survey participants mentioned the role of M&A deals as to provide a competitive edge, while 61.7% of the respondents believe that these deals can offer diversified offerings.

M&A deals can improve brand image, according to 59.5% of the surveyees, whereas 48.3% of the surveyed businesses said that they decrease competition.

According to 35.1% of the respondents, M&A deals can result in improved culture while 18.6% of the surveyees mentioned tax benefits.

About 10% of large mergers and acquisitions are canceled every year.(11) The number is quite high. Although businesses can reap several benefits from a successful merger or acquisition, there are several factors involved that can lead to the failure of such a deal. Here are some of the major reasons that can result in the failure of a M&A deal.

“A merger or acquisition comes with high risk, and if executed well, growth is inevitable.” –Kanerika Inc. 

79.2% of the survey participants indicated poor integration process as the top most reason for the failure of mergers and acquisitions (M&A). 

Post-merger integration is a complex process to handle. The merging or acquisition process can be quite tricky, with a number of business processes, employees, customers, and other parties involved. Keeping in mind the motive behind the deal and streamlining the processes needs an appropriate integration strategy. 

“Effective financial integration and management of resources are crucial for achieving projected synergies and maintaining financial health,”  mentioned Woosper.

While integrating business processes involves operational issues, it is also necessary to address the issues related to embracing the workforce. A poor integration process can put the deal at risk of failure.

To avoid any integration barriers, businesses must prioritize the formation of an integration team that takes into account processes ranging from internal management to salesforce processes. The involvement of team members having project management skills can be of great help in carrying out successful integration.

Around 56.3% of the survey participants said that not having a dedicated M&A team can result in the failure of a merger or acquisition.

Mergers and acquisitions are complex processes, and they cannot be considered as just another operation. The aspects to be looked after for a successful merger can be vast and a dedicated internal M&A team can solve the purpose.

The absence of a dedicated team can lead to inefficient planning and also negligence to certain factors, which can lead to serious issues in the future.

Limited owner involvement was mentioned as the third top reason for the failure of  M&A by 43.9% of the survey respondents.

Owner involvement is crucial for the success of a merger acquisition. The number of departments of a business that are affected by a merger or acquisition is high and personal attention from the owner is beneficial for keeping the organization's growth intact.

Limited owner involvement might lead to negligence of aspects that can harm the very motive of the deal. Safeguarding the interests of the organizations participating in the deal can be done efficiently with owner involvement.

Over 52% of the surveyees mentioned lack of synergy as one of the major reasons for M&A failure.

One of the many motives behind a merger or acquisition is the establishment of synergy. Overestimating the synergy or miscalculations can lead businesses into a deal that is not that profitable or lacks the expected synergy.

With a lack of synergy, the very purpose of the M&A deal is not fulfilled, which leads to its termination.

39.4% of the businesses felt overpaying was a critical reason for M&A deal failure.

While lack of synergy might be one reason for the failure to realize the estimated profits, there are other factors that might also result in the over expenditure in the entire M&A process.

Costs involved in managing the legal issues or facing unforeseen charges that come up in the M&A procedure might also lead to overpaying by the participating companies. This might lead to losses or earning lesser profits than expected.

41.5% of the surveyed businesses said legal hurdles could lead to the termination of a merger or acquisition.

There are a number of legal aspects that come along right from the very first step of the M&A deal. Legal aspects are as crucial as financial when it comes to a merger or an acquisition. 

A merger or acquisition deal may have to face a number of legal issues ranging from shareholder lawsuits, employee lawsuits, and intellectual property disputes. It is necessary for the participating companies to handle any legal consequences and ensure compliance with all the regulatory requirements. 

Legal complications can be tiresome if not addressed systematically. Businesses must keep in mind the M&A regulations, antitrust laws, and competition policy.  It may even lead to the termination of an M&A deal. Decision-makers can opt for professional help from M&A law firms for optimum guidance for carrying out deals with minimal hindrances.

Cultural clashes are a major setback for M&A deals, asserted 60.1% of the surveyed businesses.

No two organizations perform in the same manner. The employees and stakeholders of a business are accustomed to a particular culture and workplace environment. The merger and acquisition of two companies can lead to a clash of cultures.

Culture and change management can lead to dissatisfaction among the company's existing employees.  These differences can result in the loss of essential skills and talent. The prioritization of addressing cultural differences along with integration challenges can be a way to avoid such a risk. Ideally, a change management team can be a better choice to make an M&A deal fruitful.

Cultural clashes are one of the main challenges of a cross-border merger or acquisition.

Insufficient talent was mentioned as a major M&A challenge by 24.8% of the businesses.

The success of a merger or acquisition lies in a number of factors, including post-merger integration, cultural integration, proper due diligence practices, and capturing synergies. To get things working, it is essential to mitigate the unforeseen risks. 

“Merging different corporate cultures, systems, and processes can be complex and fraught with difficulties, often leading to operational disruptions.” –Wappnet Systems

Insufficient talent can be a major problem in tackling the issues mentioned. With a lack of attention to integration processes and poor due diligence practices, the merger or acquisition might stand at a risk of being terminated.   

35.6% of the surveyed businesses said that loss of key customers can be the reason for  M&A deals failure.

Poor integration process during a merger or acquisition can lead to declined service quality leading to loss of a few existing customers. There are several other reasons that might lead to dissatisfaction among key customers leading to a declined customer base.

Not just the service quality but the lack of familiarity and brand identity confusion are also common when the merger is not hyped enough, leading to the loss of key customers. Moreover, a negative customer perception of the target company can also lead to customers turning back toward a brand.

Apart from the risks within the participating companies, there are several external factors that can be responsible for the failure of an M&A deal. Overestimating the price of the target company is one of the reasons that lead to overpayment, which results in losses. 

Factors like unforeseen costs in the deal are also hurdles for the success of the company. Other problems that are not favorable for the deals include data security threats, unforeseen market disruptions, and acts of God or natural calamities that may disrupt the market.

A few opinions on the above statement gathered from our survey participants are as follows;

“It is possible, but depends on the process and the level of synergy. Anything can fail if people's needs are not met.” –TH-EY

“I believe in that statement because merging can offer access to new resources, which, when properly utilized to create powerful strategies, can lead to exponential rewards. However, there is always the risk of integration, especially when changes within a company can lead to downfall or loss.” –The Remote Group

“if the company had a successful track record and a highly experienced team, the risks associated with mergers and acquisitions would be significantly reduced.” –Impressit

“High risk in the merger working and both businesses merging properly, but if they do, great benefit in market share.” –MacRAE’s

“Moreover, M&As can attract regulatory scrutiny, especially if they significantly alter market competition. This can result in delays, additional costs, or even blocked deals. The potential for failure is high; studies show that a significant percentage of M&As do not achieve their intended benefits.” –DigiPrima Technologies Pvt. Ltd.

The future of an M&A deal is not easy to predict. However, businesses can follow a  few factors while planning for a M&A.

For 62.9% of businesses, following an agile approach can help businesses realize deal growth potential. By following an agile approach, businesses can form long-term strategies that align with their goals. Ensuring the participation of the leadership from both parties and a systematic approach can lead to achieving the complete potential of the deal.

The ability of the participating companies to realize the full value can help realize the deal growth potential, according to 58.6% of the businesses. By clearly identifying synergies for revenue and cost, businesses can set realistic expectations and target the potential of the deal. Also, adopting due diligence practices can help businesses realize the deal potential.

A flexible business model can be beneficial in realizing the deal growth potential, stated 43.2% of the surveyees. With integration being a tough part for the businesses to ensure a smooth transition, a flexible business model can do the magic. 

According to 32.4% of the survey respondents, possessing experts to assess the deal can help in a successful merger or acquisition. With the expertise to assess the target company and other factors that can help establish realistic expectations, businesses can realize the complete deal growth potential.

About 29.8% of the surveyees believe that AI, data analytics, and automation can help businesses realize the complete deal-growth potential. With the benefits of these technologies, businesses can go about an M&A deal with ease.

When asked about the success factors of mergers and acquisitions, the survey participants expressed wise views, some of which are mentioned below:

“Identify the target companies and start talking early with the key shareholders. When you identify the opportunity where all shareholders benefit from the same vision of future - go ahead, this is a great way to scale the companies.”--Pragmatic DLT inc

“Innovation and Adaptability: Stay agile and open to innovation to adapt to market changes and capitalize on new opportunities post-merger”. –Cyber Infrastructure Inc.

“Understanding your core target customers, financial due diligence, and understanding your industry trends” –Absolute Digital

“Proper Market Study and asking a question why we are doing M&A, will it serves our purpose.” –Jaza Software

“Yes, if the product-selling business merges and acquires with the business that manufactures the product, it can lead to a price strategy that reduces the cost of the product.” –Mega Digital

“Look for an uprising market that might have synergies with your current offering but where you don't yet excel. So you rather benefit the merged company with your clients or offer your services to the uprising market that you get from the merged company.” –Apiumhub

“Clear Strategic Vision, Effective Communication, Strong Leadership and Management, Financial Stability:” –Genesis IT Lab

“A dedicated integration team, willingness to make decisions early vs. dragging them on, defined goals and playbooks to manage the outcome” –QuatrroBSS

“Financial due diligence is critical to assess the true value and potential liabilities of the target company, ensuring that the merger is financially viable”. –Capital Numbers

“Maintaining transparent and continuous communication with all stakeholders.”. –Mobikasa Inc.

“The company buying should be much larger than the one they are acquiring. If not, there will be culture wars”.  –Colormatics

“They can lead to economies of scale, improved efficiencies, and enhanced market reach, but may also result in reduced competition and potential monopolistic behaviors.” –Day One Technologies

“Successful mergers often hinge on thorough due diligence, ensuring that both companies are a strategic fit with compatible cultures and business goals. Effective communication and clear integration plans are crucial to manage employee expectations and maintain morale during the transition. Additionally, having strong leadership and experienced management to oversee the integration process can significantly contribute to the success of a merger.” –byVoice

Technologies like AI and data analytics have simplified several business processes. Merger and acquisition deals are also not an exception for the application of these technologies. 

Data analytics can be a boon for such deals. Collecting and analyzing data from both companies can help determine growth trends and operational efficiency, which can be useful in making strategic decisions. These are the long-term success factors in mergers and acquisitions. 

When asked if they would opt for a technology-driven merger or acquisition for their business transactions, about 72.6% of the surveyed businesses said they would leverage technologies to carry out the processes of M&A.

The Role of Artificical Intelligence in M&A

While AI has been transforming almost every industry and every sector, M&A transactions are no exception. With its ability to automate a number of tedious tasks and enable successful strategies, AI can be a solution to many problems. 

While 25.7% of the surveyees believe that AI can be the catalyst for all future M&A transactions, 16.2% do not think that AI can be useful. 

A large section of the surveyees, accounting for 58.1%, are skeptical about the role of AI in M&A transactions. This might be mostly because of the lack of awareness about the role of AI in mergers and acquisitions. 

However, GoodFirms believes that technology like AI has a huge impact on the success of M&A deals. 

With its ability to automate data analytics and predictive analytics, AI can help establish due diligence practices and realize realistic synergies. Also, post-merger integrations can be simplified by streamlining workflows and optimizing supply chains.

With sophisticated data analysis techniques, businesses can leverage AI even for processes like deal-structuring.

There are a number of factors that impact the success of any merger or acquisition. Likewise, there are also a number of areas that are impacted by an M&A deal. 

“Mergers and acquisitions can have complex and far-reaching effects on market competition. While they can lead to efficiencies and benefits for consumers, they can also reduce competition, potentially leading to higher prices and less innovation. Regulatory bodies play a crucial role in overseeing M&A activities to ensure they do not harm the competitive landscape.” said SeeResponse.

An M&A deal might have a significant impact on the capital structure of the participating parties, according to 71.8% of the survey participants. With one of the parties being dominant, a number of changes happen for the stakeholders. The shareholders of the target company can capitalize on the deal. Depending on the deal structuring, the acquirer and the target companies will have a change in the capital structure. 

Stock prices are the most discussed and most impacted area when it comes to an M&A deal. Around 63.5% of the survey participants mentioned stock prices are impacted by an M&A deal. There are several factors that impact stock prices, including the perception of the shareholders about the deal and the involved companies, speculations, and rumors about the deal. Other factors that are responsible for positively or negatively impacting stock prices are market reaction, customer retention, and post-merger performance.

Based on the changes in operational efficiency and the availability of the required talent, the quality of offerings might be severely impacted. Around 56.1% of the surveyed businesses mentioned that the deal could have an impact on the quality of product/service offered post a merger or acquisition. Mergers and acquisitions are also adopted to gain access to certain technologies. The improvement in the available technologies can definitely improve the quality of the offerings. Also the change in investment is also a reason for the impact of the quality of products or services. 

Nearly 54.8% of the surveyees said that the price of offerings is impacted by a merger or acquisition. With the achieved synergies, companies can reduce costs to improve customer satisfaction. With the availability of investments and enhanced innovation with technology, businesses can cut the costs of the offerings. In the case of horizontal mergers, where the supply chain is made to operate more efficiently, cost reduction of the offerings is surely possible. 

About 51. 4% of the surveyed businesses indicated that M&A deals would have an impact on the services offered, while  48.6% of the surveyees mentioned the deals can create severe market reaction.

Market competition is a major area that is impacted by mega mergers or acquisition deals. The improved market concentration and dominance over the market offer a competitive edge for the companies participating in the deal. 

“Mergers and acquisitions can significantly impact market competition by increasing market concentration, potentially creating monopolies or oligopolies. This consolidation of power can reduce competition, leading to higher prices and less choice for consumers.” –Inventcolabs Infotech Pvt. Ltd.

Taking over a smaller business in the same sector ensures the elimination of potential competition in the future and reduces the risk of being dominated by other companies. 

While mergers and acquisitions are often opted for to gain access to newer markets, cross-border mergers and acquisitions are a great way for established companies to enter the local competition by acquiring a smaller company.

Here are the views of some of the survey participants on the impact of M&A deals on market competition:

“Yes, mergers and acquisitions can impact market competition significantly. M&A can lead to increased market power, reducing competition and potentially driving up prices. While they can achieve economies of scale and foster innovation, they might also create barriers for smaller firms. Effective regulatory scrutiny is essential to ensure these impacts do not harm market competition. Overall, while M&A can enhance efficiency and growth, they must be carefully managed to avoid stifling competition.” –Jelvix

“Yes, mergers and acquisitions can reduce market competition by consolidating market power, potentially leading to higher prices and less innovation.” –Brilliant Web Design

“M&A can generate a disruption on the market that will impact competition”. –Software Testing Bureau

• The IT industry is witnessing the most number of M&A deals, followed by the Banking & Finance sector, and Ecommerce.
• 85.1% of the survey participants said that assessing the strategic fit is necessary for businesses to consider when opting for a merger or acquisition.
• For 51.4% of the surveyed businesses, intellectual property must be considered while planning for an M&A deal.
• 74.3% of the survey respondents said that businesses opt for a merger or acquisition to promote the growth of business.
• Increasing the market share is a major reason for opting for an M&A deal, asserted 66.2% of the surveyed businesses.
• While 87.8% of the businesses said that access to newer markets as a benefit of an M&A deal, 83.1% of them said that these deals can result in increased revenue.
• According to 68.9% of the survey respondents, mergers and acquisitions can boost the efficiency of the business, whereas 67.3% of the respondents said that it can help expand the product portfolio.
• Poor integration process can lead to the failure of mergers and acquisitions, stated 79.2% of survey participants.
• Limited owner involvement was mentioned as an M&A challenge by 43.9% of the survey respondents.
• A flexible business model can be beneficial in realizing the deal growth potential, stated 43.2% of the surveyees.
• 25.7% of the surveyees believe that AI can be the catalyst for all future M&A transactions. 

Mergers and acquisitions have been around since the advent of businesses. The taking over of businesses can be beneficial for both the acquirer and the target company in their own ways. While the number of M&A deals that result in failure is high, meticulously planned and strategically executed M&A deals can offer a plethora of benefits for the participating businesses

The impact of M&A deals on the market competition is evident along with the other effects, and businesses tend to reap the maximum benefits of the concept. A professional advice and service assistance from reputed law firms can help businesses follow the right methodologies to complete a deal and gain maximum benefits.

Although the role of technology in these deals might not be very common, it surely has a potent future due to its advantages. Process automation and accurate data analysis will greatly benefit decision-making capabilities.

We sincerely thank our Research Partners for their valuable insights.

1. https://www.statista.com/statistics/267368/number-of-mergers-and-acquisitions-worldwide-since-2005/ 

2. https://www.statista.com/statistics/387545/value-of-global-merger-and-acquisition-deals-by-region/ 

3. https://www.morganstanley.com/ideas/mergers-and-acquisitions-outlook-2024-trends 

4. https://imaa-institute.org/mergers-and-acquisitions-statistics/ma-statistics-by-industries/ 

5. https://macouncil.org/blog/2024/06/18/how-conduct-ma-risk-assessment 

6. https://corporate.exxonmobil.com/news/news-releases/2024/0503_exxonmobil-completes-acquisition-of-pioneer-natural-resources 

7. https://news.abbvie.com/2024-02-12-AbbVie-Completes-Acquisition-of-ImmunoGen 

8. https://startupnation.com/trending/roark-capital-closes-acquisition-of-subway-restaurants-sandwich-chain/ 

9. https://corporate.exxonmobil.com/who-we-are/our-global-organization/our-history 

10. https://www.jnj.com/media-center/press-releases/johnson-johnson-completes-acquisition-of-shockwave-medical 

11. https://www.mckinsey.com/capabilities/strategy-and-corporate-finance/our-insights/fix-them-first-executing-regulation-driven-separations