It is generally accepted that all mergers and acquisitions have one common goal regardless of their category or structure. Give your opinion indicating the benefits that companies can derive upon by merging.

All mergers and acquisitions have one common goal to create synergy that makes the value of the combined companies greater than the sum of the two parts. Synergy may be in the form of revenue enhancement and cost savings. By merging, the companies hope to benefit from the following: Bigger size: Many companies use M&A to grow in size and leapfrog their rivals. While it can take years or decades to double the size of a company through organic growth, this can be achieved much more rapidly through inorganic growth, i.e., mergers or acquisitions. Preempted competition: This is a very powerful motivation for mergers and acquisitions, and is the primary reason why M&A activity occurs in distinct cycles. Domination: Companies also engage in M&A to become a dominant player or market leader in their respective sector or industry. However, since a combination of two behemoths would result in a potential monopoly, such a transaction would come under purview of regulatory authorities. Tax benefits: Companies also use M&A for tax purposes, although this may be an implicit rather than an explicit motive. Economies of scale: Mergers also translate into improved economies of scale which refers to reduced costs per unit that arise from increase in total output of a product. Acquiring new technology: To stay competitive, companies need to stay on top of technological developments and their business applications. By buying a smaller company with unique technologies, a large company can maintain or develop a competitive edge. Increase in market share: Merger aids in increasing the market share of the merged company. This rise in the market share is achieved by providing an adequate supply of goods & services as needed by clients. Entering into an agreement with clients for continuous supply of goods and services.