Identify and discuss some positive and negative drivers of M&A profitability.

Identify and discuss some positive and negative drivers of M&A profitability.
Identify and discuss some positive and negative drivers of M&A profitability. please include references apa style

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Mergers and acquisitions represent one of the transactions in the business environment where two firms agree to consolidate their assets in a takeover strategy to increase competitiveness and expand market coverage. Mergers and acquisitions may take various forms ranging from buying of stokes of another firm, purchasing of assets to complete acquisitions. Mergers and acquisitions may improve the economies of scale of the firms with respect to purchasing power and the ability to negotiate larger deals due to a reduction of overhead cost and access to a wider market (Nahavandi & Malekzadeh, 1988). A company may increase its profit margins by undertaking a merger or an acquisition due to various reasons.

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