As a mergers and acquisitions (M&A) advisor, I consider my line of work narrow and broad in equal measure when it comes to creating a flourishing future for all.

Mergers and acquisitions are, in a purely technical sense, economic transactions between buyers and sellers of companies. Yet their cumulative effect across industries and markets creates a broader impact—whether intended or unintended—on society.

With the help of M&A and its ability to bring companies with different assets and strengths together, available capital is channeled to where it is most needed, experts are linked to new ideas, and products and services are efficiently developed and made available to a broader reach of customers.

In our global economy, there’s a constant need for innovation, and it is that same innovation that has driven better outputs and more effective ways of doing things—whether in building a car, connecting car drivers with people who need a ride, implementing artificial intelligence capabilities to improve customer service, or developing new vaccines. The innovation process, in most cases, requires capital investments that are not always aligned and available to the companies. By bringing capital where it’s needed, M&A helps fuel innovation and elevate enterprises of every industry to new heights.

M&A is the ultimate path to achieving economies of scale and amplifying strengths.

The other bridge that is crucial to achieving a flourishing future for all is global connectivity and transfer of knowledge, skills, and best practices. Cross-border M&A results not only in bringing assets and teams together but also in the geographic expansion of products and services. In an ideal world, companies with leading products and services should be accessible to a global market.

Through M&A, organizations can benefit from economies of scale and synergies, thus improving productivity and efficiency. The ability to generate output at a lower cost will ultimately result in growth and benefit for consumers.

The role of regulators is crucial to ensure that M&A transactions are benefiting relevant stakeholders, in particular, the end user of products and services, and creating an economy that thrives with competition and innovation. Not all M&A is successful or even warranted, but a great deal of it has resulted in stronger and more beneficial enterprises. Proper regulation can serve as a critical mechanism for enacting guidelines and limitations to ensure that transactions are carried out in a way that serves the greater good.

M&A is the ultimate path to achieving economies of scale and amplifying strengths. When done right, it can lead to expanded product offerings, improved service quality, lower prices, greater market access, and the alchemy of innovation that you get when combining the talents, skills, and advantages of two different organizations. 

In its own way, M&A has contributed to economic advancement and prosperity across industries and geographies that have touched countless lives.