Factors contributing to Mergers and Acquisitions

1. External factors
   1. Economic factors
      • Domestic economic expansion
      • Global competition
      • Economies of scale
      • Market expansion
   2. Technological factors
      • Ease of communication
      • High cost of R&D
      • Complex technology
      • Cross border R&D alliances
   3. Govt/Political factors
      • Regulatory reforms
      • Privatization
      • Globalization and liberalization
   4. Exchange rate factors
2. Internal factors
   1. Growth
   2. Diversification
   3. Following clients