COMM 300: Mergers & Acquisitions

From BluWiki

Note: there's very little first-hand knowledge about it

Problems with mergers

• Cultural differences
  • Differences in the "way we do things"
• Distance problems
• Anti-trust/regulatory problems
• Coordination problems

Reasons for mergers

• Strategic synergies
  • Cost cutting
    • Here you want to cut quickly, trimming firm to prevent "festering" of angry employees
  • Revenue enhancements
    • If this is your priority, then you might want to accept redundancies in the interest of less cultural conflict.

Ways to go about synergies

(more about it in Porter article: From Competitive Advantage to Corporate Strategy)

• Share knowledge
• Share activities