Posted by Daan de Koning on February 04, 2002 at 04:11:56:

In Reply to: KM, Business and Mergers: A question posted by Martyn R Jones on January 30, 2002 at 05:50:41:

Hi Martyn

Here a message from Holland, where the sun shines even when it rains (!)

In this discussion thread you started, lots of rational arguments pass by about the objectives of M&A's, e.g. reduce competition, gain market power, increase market share, profit growth.

From a different perspective considered, M&A decisions are all made by boardroom decision makers, board of directors etc. What is the psychological profile of boardmembers and senior executives?

Many of those have the need to proof that they are (still?) 'the man'. (Most of them are male, but even the occasional woman wants to show she is in charge).

Unfortunately for them real profit and loss is realized in operations. So the only way they can influence the profits themselves, is by M&A's.

So that's (imo) why they do it. Power, politics and psychology.

Regards
Daan

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• Re: KM, Business and Mergers: An answer Riva Gianluca 05:45:33 02/04/02 (0)

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