& Adams, 2012). Sometimes a business can’t continue to grow because it lacks the capital and resources to advance to the next level. By merging with a company that can provide them, the business can expand and become more profitable. When two companies merge, they often assume a larger market presence. In a strategic alliance, two companies each have something the other needs. A small technology firm may need capital that a larger firm can supply; the larger firm needs the small technology firm’s unique skill set (Spinelli. & Adams, 2012). Mergers and acquisitions can end up making the seller very wealthy if a bidding war occurs where more than one company is interested in buying the business. There are also potential negative aspects; the two companies may not be a good fit for each other and can end up destroying the business. If one of the business owners wants to buy back his/her portion of the business, they may have signed a non-compete clause which prohibits them from doing so for a certain period of time. Acquisitions and mergers can be very complicated with layoffs, relocations and organizational structure changes. The organization may end up losing employees and managers who are lured away to competitors in an effort to achieve a more stable work
& Adams, 2012). Sometimes a business can’t continue to grow because it lacks the capital and resources to advance to the next level. By merging with a company that can provide them, the business can expand and become more profitable. When two companies merge, they often assume a larger market presence. In a strategic alliance, two companies each have something the other needs. A small technology firm may need capital that a larger firm can supply; the larger firm needs the small technology firm’s unique skill set (Spinelli. & Adams, 2012). Mergers and acquisitions can end up making the seller very wealthy if a bidding war occurs where more than one company is interested in buying the business. There are also potential negative aspects; the two companies may not be a good fit for each other and can end up destroying the business. If one of the business owners wants to buy back his/her portion of the business, they may have signed a non-compete clause which prohibits them from doing so for a certain period of time. Acquisitions and mergers can be very complicated with layoffs, relocations and organizational structure changes. The organization may end up losing employees and managers who are lured away to competitors in an effort to achieve a more stable work