Why is it necessary to pursue FDI by means of M&A?

Social and economic aspects
– Minimize the social and economic loss of companies going bankrupt and help
companies to rebuild themselves;
– Increase management efficiency and reduce costs through industrial restructuring;
· Acquire new technology, train and educate potential human resources, minimize the
time needed to secure new markets and establish the basis for management;
– Strengthen the market control power and increase the concentration of using company
resources for a larger market.
· Reduce costs in terms of raw material purchase, inventory management and fixed
production costs, as well as achieve economies of scale through more production

Business aspects
– Increased value-added and business synergy effects through expanded value-chain
activity;
– Reduced R&D costs and secure technology lead to faster market access.

♦ Financial aspects
– Reduced corporate risk factors or dispersed risk factors through increased returns;
– Higher potential to manage liabilities and expected benefits such as tax breaks.