Assess the extend to which the merger between firms is in the interest Essay

Assess the extend to which the merger between firms is in the matter to of both consumers and the firms - Essay ExampleThis is always luxurious to the suppliers, who in a bid to keep the foodstuff under consideration will offer discounts and sale their supplies to the merged organization at a cheaper valuate (Cooper, 2006).It is important to denote that the organization will not only well-being from discounted products, but it will as well as be equal to easily access credit and finances from financial institutions cheaply. This is because of the increased size and corking base of the in the altogether organization. Another benefit of merger is that an organization is suitable to diversify its production and services. count for instance, the merger between Pay Pal, and eBay. eBay is an online auctioneering firm, where as Pay Pal is an online payment system (Foster, 2010). On this basis, eBay is able to diversify the production of its services that is provision of online auc tion services, as well as providing services in online payments. Another important benefit of a merger is an increase in the commercialise share of the new firm/ organization (Shenfelter and Hosken, 2010).For instance, the failed merger between Daimler and Chrysler was to help the two organizations increase the share of their markets in the joined States, and Germany as a whole. This is by taking advantage of the distribution channels that the two organizations commanded. Another benefit of a merger is that they result to improving the image of a company under consideration (Cooper, 2006). This is because mergers and acquisitions ordinarily get huge media coverage, as a result, the companies can take advantage of this, to outline their policies, and also market their products. A company that experiences a merger will also manage to increase the value of its stock, and this is because of the erudition that the new entity formed will be profitable (Foster, 2010).For instance, the m erger between US Airways, and the American Airlines was able to