Why Companies Pursue M&A

This question tests whether you understand that M&A is not always about pure value creation, but can also be driven by strategy, defense, and competitive pressure. In an interview, you should be able to explain the motives behind acquisitions, such as protecting market position, responding to rival moves, and adapting to changes in technology or industry structure. Interviewers ask this because they want to see whether you can think beyond the spreadsheet, connect M&A to corporate strategy, and explain why management may still pursue a deal even when the financial case is not obviously accretive.