Journal of Applied Business, Economics and Strategic Management ISSN: 3139-1664 (Online)

Authors: Rohit Kapoor, Sneha Menon

Abstract: Mergers and acquisitions (M&A) have become prominent strategic tools for corporate growth and market consolidation in the 21st century. This paper explores the economic dimensions of M&A, analyzing motivations, financial outcomes, market effects, and strategic considerations. Through a comprehensive review of literature, empirical data, and case studies, the study examines the impact of M&A on shareholder value, market efficiency, and economic performance. Key economic theories such as synergy realization, market power, and transaction cost economics are applied to understand the financial implications of mergers and acquisitions. The findings suggest that well-executed M&A activities can lead to enhanced efficiency, economies of scale, and sustainable competitive advantage. Challenges, risks, and regulatory considerations are also addressed, providing a holistic perspective on the economic analysis of M&A in the contemporary business environment.

Keywords: Mergers, acquisitions, economic analysis, synergy, shareholder value, transaction cost, market efficiency, corporate strategy.