Why are mergers and acquisitions strategically important?

There are two kind of buyers:

Strategic Buyer - Companies that want to expand through acquisitions. They are active in managing the companies they acquire.

Financial Buyer - These are private equity funds. They acquire to increase the portfolio of companies they hold. Passive owners of companies they acquire. Usually exits a company after 5 to 7 years.

Acquisitions by their very nature are inherently strategic.

The aim of any acquisition or merger is to increase growth and profitability.