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Sagot :
Organizations make acquisitions to grow their business and market share. The acquisition means acquiring the business of other companies and using their brand, product, resources, etc for the growth of the business. Second, Organizations are able to lower their business cost by economies of scale and scope due to acquisitions. Third, Organizations that want to enter into different markets like foreign countries then make acquisitions.
For example- Walmart acquired Flipkart an e-commerce company in India to enter into the online selling or eCommerce industry as well as enter the Indian market. This strategy is to compete with Amazon in India.
Successful acquisition increase or protect shareholder value because the Price of shares in which shareholder invested increases.
For example- Amazon acquired wholefoods Market company on August 28, 2017. Before the acquisition, The share price of the whole foods market was declining but after the acquisition from Amazon the share prices increase because the Brand name of amazon was attached to the company and now Investors or shareholders have high-value market shares in the company.
Learn more about acquisitions here https://brainly.com/question/11412887
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