I am doing a paper on an actual merger from 15 years ago and need to write an an
ID: 2780222 • Letter: I
Question
I am doing a paper on an actual merger from 15 years ago and need to write an analysis on why it was a good idea. Almost like I am proposing the merger to the board and having to sell it. I am struggling with what facts and figures to share and evaluate. I am struggling with this class and Looking for a point in the right direction. Should I look at wacc? Stocks? Any guidance would be greatly appreciated. I am doing a paper on an actual merger from 15 years ago and need to write an analysis on why it was a good idea. Almost like I am proposing the merger to the board and having to sell it. I am struggling with what facts and figures to share and evaluate. I am struggling with this class and Looking for a point in the right direction. Should I look at wacc? Stocks? Any guidance would be greatly appreciated.Explanation / Answer
Merger means the two companies making decision to become a single entity. It is the absorption done by larger company s smaller company. It is normally done against the will of the management of the company.
Because of merger, there is reduction in cost. Thus, the company is enjoying greater power of purchasing at the lower cost of raw materials and other necessities.
Penetration in market which helps in accessing large number of customers.
Diversification is also playing an important role. Various ranges of products and services are offered by Merger Company. This will help to capture more number of customers.
Skills and knowledge- Merger makes the use of skills and knowledge of both the company. This helps in increasing the overall performance of the company.
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