This year has a fascinating take on corporate mergers and acquisitions. When the world is busy in acquiring the other companies, I, Sanjeet Veen was busy trying to understand these business acquisitions and the entire game play. While most of the companies could not beat, the competition heat even after years of establishment in the field and gave up the game in an unexpected way. Ramping up, growth getting bigger and bigger is what called a real game in the line of business. Imagine any venture slightly out of the line and the news will be soon of the merger. Every year there is 23% of merger takes place around the globe that is acquired by some other company playing their game well. Many small business ventures seek downfall before even being recognized. What is the reason? Why they are failure? Is their business plan an inefficient one?
The realities of today’s businesses are that all size of ventures is moving nimbly. As per the global market experts view and my research says that , rather than concentrating about downsizing a company most of the firms are concentrating on exponential growth, it is all about buying and building. Financial gains are still on target with these mergers; however, a big company taking over something running in meager loses, depends upon good integration management to success. It was not a surprise for me, when Flipkart acquired Jabong. As per me, Jabong had taken the right decision as the company was not getting on with great profits and was struggling hard to maintain its financial momentum.
When Myntra was acquired by Flipkart, everyone thought it might not make up to the profit margins. But with amazing integral management techniques, this merger have evolved strongly and is said to be one of the strongest contender in the clothing line on eCommerce platform. Let us hope, Jabong stands up to its unique way. However, what about yahoo, is not it a surprise to many of us. Well most of the global market experts have analysed this forth coming acquisition, but on the cost it was acquired was something that was not expected. Initial stages when yahoo was making its progress, the company would stand on margin of 600-800 million, which should grow exponentially. However, over the period of loses and low business yahoo is now acquired for 4.8 billion by Verizon. While few mergers have quintessential profits for both the parties in certain way, however few landed up in crises and yet played well.