The objects of a takeover are:

1. To effect savings in overheads and other working expenses on the strength of combined resources

2. To achieve product development through acquiring firms with compatible products and technological/manufacturing competence, this can be sold to the acquirers   existing marketing areas, dealers and end users.

3. To diversity through acquiring companies with new product lines as well as new market areas, as one of the entry strategies to reduce some of the risks inherent in stepping out of the acquirer’s historical core competence.

4. To improve productivity and profitability by join efforts of technical and other personnel on the strength of improved efficiency in administration, management, production, finance and marketing of goods and services as a consequence of unified control.

5. To create shareholder value and wealth by optimum utilization of the resources of both companies.

6. To eliminate competition.

7. To keep hostile takeover at bay.

8. To secure advance of vertical combination by having under one command and under one roof, all he stages or processes in the manufacture of the ends product which had earlier been available in two companies and different location, thereby saving loading unloading, transportation cost and other expenses and also by affecting saving of time and energy unnecessarily spent on excise formalities at different places and stages.

9. To increase market share.

10. To achieve economy of numbers of mass production at economical cost.

11. To achieve market development by acquiring one or more companies in new geographical territories or segments, such as new user groups or price categories, in which he activities of acquirer are absent or do not have a strong presence.