1) "Build empires," increasing the size and scope of the firm well beyond that which maximizes shareholder wealth.
Motivations for undertaking acquisitions
1) it has been suggested that managers may be able to increase their compensation by increasing the sizes of their firms.
2) managers may be able to increase their prestige or standing in thebusiness community by purchasing other firms
"Jensen (1989:66) argues "managers have many incentives to expand company size beyond that which maximizes shareholder wealth. Compensation is one of the most important incentives."