Merger and Amalgamation is one of the most attractive routes to enter into a new business. Explain the advantages of starting a new business through merger/amalgamation.

An organisation could venture into a new business taking any of the routes like funding a start-up, joint venture, strategic partnership. The reasons why mergers and acquisitions appears to be the most attractive route, despite all the compliances are as under: It is a much quicker way to enter the market vs. starting from the scratch vide a start-up route. Another advantage is synergy; one can grab a bigger market share, create a backward or forward integration and attract a much larger customer base, and simultaneously looking to reduce the cost of operations. Overcoming the entry barriers and changing the league on the value chain itself by positioning itself as a larger conglomerate. Ready availability of the necessary infrastructure. Ready availability of a brand name. Skipping the entire gestation period which is cumbersome and costly in terms of time and effort.