Benefits for Companies from Mergers and Acquisitions

The article examines the benefits for companies from mergers and acquisitions. A critical literature review of established studies on the subject finds that companies worldwide effectively use mergers and acquisitions as tools for corporate restructuring. The main benefits of restructuring relate to increased economies of scale, generation of a constant cash flow, reduction of unit costs and creation of monopoly power. Mergers and acquisitions create prerequisites for improving financial results and reducing risks associated with the activity.