15/02/2023
In a lecture in the Asharqia Chamber
A specialist who monitors the pros of acquisition and merger of small enterprises
Business developer Dr. Murad Mansour explained that the options of "merger" and "acquisition" had become one of the best solutions to meet the challenges of globalization and competition and stay in the market.
This came in a lecture organized by the Asharqia Chamber Incubator for Entrepreneurship "Tuesday, February 14, 2023, under the title "Merger and Acquisition in Small and Medium Enterprises", as the lecturer mentioned that the merger is a union between two or more companies to form a new company that has an independent legal personality, and acquisition is financial control management of one company over the activity of another company,
He explained that the merger - according to this definition - is a strategic choice for small and medium enterprises towards conglomeration and alliance to create a new and giant entity that can achieve goals that each company cannot achieve on its own, while the acquisition - according to the minutes - is often carried out by giant companies with heads. The big money uses advanced technology in its business and does so to achieve its goals of entering new markets, controlling a specific product, or controlling markets by acquiring smaller companies, especially those operating in the same field.
He pointed out that mergers and acquisitions have witnessed significant growth in all parts of the world during the last two decades. Pointing out that in 2015, the value of the assets of the companies that conducted mergers and acquisitions amounted to more than 4 trillion dollars at the global level.