Mergers and acquisitions are widely seen as a long-term strategy for resolving financial problems in corporations. This research study that is primarily based on a desk review established that this commercial enterprise approach has given mixed findings, such as failing to establish that the stated factors led to the manner of mergers and acquisitions, nor has it published an increase in profitability of commercial enterprise financial performance due to mergers and acquisitions. However, all mergers and acquisitions are no longer unsuccessful due to some factors like monetary, advertising, and operational problems. Thus, there are other important factors that influence mergers and acquisitions, such as value creation, “cultural” integration, and profitability. According to the study’s findings, mergers and acquisitions have a positive impact on financial institutions’ net income in the form of increased wealth, decreased effective spending, and increased revenue growth.

Mergers and acquisitions have been pronounced and adopted with the profound need to combat the economic crisis and neutralize the detrimental effects of the COVID-19 pandemic. The uncertainty and risks involved in undertaking business operations have rapidly given rise to the strategic and systematic execution of cost-cutting measures and survival techniques. Mergers and acquisitions are one of the most effective strategies for the survival of a company through the creation of synergies and leveraging on economies of scale. The aim of the study was to establish the economic impacts of mergers and acquisitions in the corporate world. The study specifically sought to analyze and determine the extent to which mergers and acquisitions affect the selected variables constituting market share, shareholders' wealth, portfolio diversification, employment, and economies of scale. The analysis apparently observed that mergers and acquisitions have no significant impact on shareholders' wealth in the short run, as indicated by stock price movements, despite commanding an extensive customer base and market share, reduction of operation costs based on economies of scale, and mitigation of financial risks through portfolio diversification. The corporate employees always impede any kind of mergers and acquisitions due to the uncertainties and apprehensions associated with their engagements and organizational culture pitting them against the conventional narrative that change is inevitable.