Mergers and acquisition are corporate strategies where two or more companies combine into one to achieve synergies or other advantages for both parties. They can be classified according to the business objectives of each merger within the merger-and-acquisition realm into three categories – horizontal, vertical, and conglomerate. Various examples of mergers show how companies can improve their position in the marketplace while reducing operating costs. These strategies improve business efficiencies, result in increased revenues, and lead to greater innovation by implementing a merger strategy.mergers provides investors and businesses with an understanding of how companies evolve in today's marketplace as well as an insight into how some of the largest corporations have continued to develop and adapt in a very competitive and rapidly changing environment.