As described in this paper, there are variety of motivations for mergers
and acquisitions. It's still debatable to surely name a specific motive or
reason since every deal has a different situation. It also depends on the type
of the acquirers.
Risk-takers, entrepreneurs and market leaders usually have a different set
of aims than the market followers. The motives can be affected by internal
and external factors such as bank size, cash fiow situation, market condition,
economy, competition level, etc.
Therefore, in order to find out the accurate reason/s for mergers and
acquisitions, they have to be studied and analyzed comprehensively and
specially case by case. The mentioned motives are just the general drivers
for mergers and acquisitions and sometimes potential acquirers may consider
a mix of different motives as well.
A review of average actual return of targets and acquirers in different
situations has been shown on table 1.