Context and Requirement
In the current financial environment Mergers and Acquisitions (M&A) activity is high. Firms find it relatively easy to borrow money at low rates of interest and these funds are then used to acquire other companies either in the same or different sectors. There are many motives for M&A activity and 2017 has continued the trend seen in the second half of 2016 which witnessed a period of record M&A volumes as measured globally.
Critically assess the process by which Merger & Acquisition targets are identified and in addition examine why so many M&As fail. Your answers should include relevant examples and a detailed explanation of why the failure occurred. Your conclusions should present key points that acquiring companies should focus on to ensure that M&A they enter are successful. Your answers should also include an introduction which sets the scene appropriately.