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Mergers or acquisitions have become a norm for companies aiming at growth Various companies resort to mergers and acquisition to form strategic alliances In majority of cases the underlying reason for these is to guarantee long-term sustained achievement of fast profitable growth for the business In todays competitive world it is important for various companies to keep up with a rapidly increasing diversified global market and increased competition In order to gain competitive advantage it is essential to form alliances A merger is the combining of two or more companies into a single corporation This is achieved when one company or business purchases the property or some other form of assets from another company The result of this action is the formation of one corporate structure This new corporate structure retains its original identity An acquisition is a little different from a merger in that it involves many problems being dissolved and an entirely new company being formed There are many reasons for mergers and acquisitions such as growth of the company achieving the economies of scale for power or better management stability and to increase market share and eliminate competition At the core of mergers and acquisition lies the sole objective of maximization of shareholder wealth regardless of the scale of the business This maximization of the wealth must be both in day-to-day running of the business as well as in the long-term through their tactical decisions A well executed acquisition or merger will increase the profits earned by increased sales income and by reducing costs It may also place the business in a position of strategic advantage over its competitors that will enable it to add value by using the opportunity of that advantage to increase profitability In the case of BMW Gould B 1998 acquiring Rover for 800 million dollars highlights the importance of managers and effective human resource management in mergers and acquisitions BMW was easily able to gain entry into
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