Motives behind Merger &

Acquisition

Synergy

Operating

cost savings
through economies of scale or
increased sales and profits)
(

Financial( lower taxes,

higher debt capacity, better
use of idle cash)
( when a firm with accumulated
losses or unabsorbed depreciation
merges with a profitable firm, the
combined firm can set off such

Motives behind Merger &

Acquisition

Acquiring New Technology

Twitters acquisition of Madbits, an artificial

intelligence company that has developed
technology which recognises digital images using
deep learning, highlights the level of interest in
artificial intelligence (AI) in the aftermath of
Google's purchase of Deep Mind in January. The
technology acquired by Twitter will assist it build
an image search system. Twitter will also be
aiming to analyse the images users post to
enhance user experience and provide targeted
adverting for businesses.

Motives behind Merger &

Acquisition

Improved Profitability

The survey carried out by Grant Thompson across

26 countries revealed that 34% of the business
use M&A to maintain or improve profitability.
The merger of the legendary Walt Disney and
everything-we-create-kids-adore Pixar was a
match made in cartoon heaven.

Motives behind Merger &

Acquisition

Acquiring a Competency

ICICI and ITC alliance made the retailer network

and depositor base available to the merging
entity.