As a business player, there are many things that you can do for the business and the market. For the market, you can provide them with more and more products; while for your business, both internal and external expansion can be a real good selection if you want the business to enlarge. But still, even though business allows you to do everything, you have to realize that every step and move that you take can trigger the certain thing and the worst is bankruptcy. It is the condition that every business player would afraid of.
However, even though there is a risk, there is also a solution. Mergers and Acquisitions are the opponent for the risk. When risk tries to bring your business down, these two strategies try to help it with many ways and benefits. In mergers, you are allowed to combine your company to others. There are certain types of merger but basically they are the same. In doing merger as well as acquisition, the other company will purchase about 50% of your stock or shares.
This way, the big part of the company is no longer yours. This though, gives you benefit because you will have back-up to support you when you are required to face specific thing such as a hostile takeover. It requires the stakeholder voice before one can really damage the company.