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why do big companies are likely to merge to other companies especially those small firms?
There are many reasons why a business would acquire or merge with another business. The most common factor is the potential growth of the business. ... They can reduce the costs of developing business activities that will complement a company's strengths. The acquisition can also increase the supply-chain pricing power
Companies merge to expand their market share, diversify products, reduce risk and competition, and increase profits. Common types of company mergers include conglomerates, horizontal mergers, vertical mergers, market extensions and product extensions.
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