In corporate capital scheme, there are two ways for a company to raise its capital, through loan and equity. A company can raise its capital by issuing shares on the stock market as the quickest and easiest ways to finance its operation. And second is take loan from banks or any other sources to raise capital of his company. With this initial reason and based on economic perspectives further, the concept of merger and acquisitions is developed.
Merger or acquisition, in the context of corporate strategy, is an integration of two companies with a certain mechanism in particular business area that ultimately result in a large capitalization in the market economy. It is very easiest way to raise capital of company or reconstruction of his company, simply combining two entities to increase opportunities in the given market. Theoretically, there are three primary methods of M&As; those were merger, sale of assets, and tender offer. Merger and Acquisitions are usually simply referred to as merger, the condition or process in which a company buys “another company”