Washington, Sept. 04, 2024 (GLOBE NEWSWIRE) -- GoodFirms, a universally renowned B2B ratings and reviews platform, released its recent survey research report, "The impact of mergers and acquisitions on market competition." The survey aims to share the benefits and risks of mergers and acquisitions. It also attempts to understand the impact of an M&A deal on market competition.
GoodFirms survey findings revealed that the IT industry is witnessing the highest number of mergers and acquisitions while the banking and finance sector followed by eCommerce industries have the most massive M&A opportunities.
Analyzing the factors that businesses consider for a M&A deal, GoodFirms found out that that 85.1% opted for the strategic fit, 78.4% opted financial performance of the company, 62.2% believed in risk assessment, 51.4% said intellectual property, 48.6% mentioned regulatory/legal compliance, and 45.9% opted proper due diligence.
“Businesses are initiating M&A deals to promote business growth, increase market share, diversify business portfolio, create value, establish synergies, and overcome financial inefficiencies,” said the respondents of GoodFirms Survey.
Analyzing the benefits of a business merger and acquisition, GoodFirms was able to gather insights that include; access to new markets, increase in revenue, boost in efficiency, expand product portfolio, competitive edge, diversified offerings, enhanced brand image, less competition, improved culture, and tax benefits.
The research also highlights the major reasons for the failure of a M&A deal such as poor integration process, cultural clashes, no dedicated internal M&A team, lack of synergy, legal hurdles, overpaying and much more.
Further, GoodFirms unveiled that technology like AI, data analytics will be the catalyst for all future M&A transactions.
About the Research:
GoodFirms Survey—"The impact of mergers and acquisitions on market competition" queried 525 participants, aimed to gather views on the various aspects of Mergers and Acquisitions(M&A) like how the managers, executives, and boards think about M&A, approach their strategies, and create a positive impact on market competition.
Key Findings:
- The IT industry is witnessing the most number of M&A deals, followed by the Banking & Finance sector, and Ecommerce.
- 74.3% of the survey respondents said that businesses opt for a merger or acquisition to promote the growth of business.
- Increasing the market share is a major reason for opting for an M&A deal, asserted 66.2% of the surveyed businesses.
- Limited owner involvement was mentioned as an M&A challenge by 43.9% of the survey respondents.
- A flexible business model can be beneficial in realizing the deal growth potential, stated 43.2% of the surveyees.
- 25.7% of the surveyees believe that AI can be the catalyst for all future M&A transactions.
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About GoodFirms:
GoodFirms is a Washington, D.C.-based B2B review and rating platform that delivers rich, original, and in-depth coverage of IT products and services to B2B service users. Both service seekers and service providers benefit from the reviews, ratings, and research insights delivered by GoodFirms.
