What factors motivate international mergers and
acquisitions?
oTechnology and Talent Acquisition
Countries like India have now become front runners in the talent acquisition process for
companies, the relatively lower commercial and employee costs make India a lucrative
destination. Also, with changing trends in technology some companies have been
aggressively acquiring tech companies to build in capabilities
oExpanding Customer Base
One of the easiest and the fastest way to enter new markets is to acquire an already
existing market player. The Flipkart-Walmart deal is a classic example of such an
acquisition
oDiversifying products and services
Companies may acquire similar product lines to diversify their portfolios or may acquire
completely new businesses in order to add a new product or service to their existing
portfolios
oTo gain competitive advantage
Acquisitions can help companies enter new markets, get new products etc. if they do so
before their competitors, they can get a head start over other competitors
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