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Transcript of Mergers
When two or more companies join together
What makes an Unsuccessful Merger?
An unsuccessful merger occurs when the two parties cannot agree on what to do, for example, if they both won't compromise it will be as Abraham Lincoln said, "A house divided cannot stand"
Famous Unsuccessful Mergers
These a few mergers that didn't work so well-and were in the spotlight too
These are very different as only one person manages the company in sole proprietorship and deals with all the costs and profits whereas in merged companies, costs are split between the owners.
Some things we want you to remember:
These are some of the most famous (and successful) mergers in the world of business:
Famous Successful Mergers (continued)
There were so many we couldn't fit them on 1 page:
Why do mergers happen?
if a strategic alliance is successful, the companies may agree to a merger
if one company has purchased another company so that hopefully they will have more sales and profit. This can also be seen as an improvement if it works well.
if the companies have decided to combine their interests
By: Michelle, Matthew, Hillary and Gennie
if the merge isn't successful all the companies included in the merger will fall
power in the company may not be distributed evenly
mergers can help both companies strengthen their operations, expand into new markets and acquire new technologies, resources and skills
small businesses may gain access to more capital or a larger sales force
What Makes A Merger Successful?
A merger is often successful if the two different or not-so-different companies can come together and play on each other's strengths. For example; if a communications company and a marketing company merge, the marketing company can help the communications company advertise more for less so that they could earn more profit together.
All three business structures include business partners joining in an effort to increase revenue as well as profit
Merger - a joining of two companies for the betterment of each
A merger is only successful if both sides are willing to compromise and work together if not, the merger will fail
Nelson: The World of Business (fifth edition)
Why We Chose This Topic
we wanted to find out more about why/how famous companies such as Youtube and Google and Disney and Pixar come together to form one company