Merge with Others



What is a "Merger"
A merger happens when two companies agree that they want to go forward as a single company unit rather than being two separate entities. It's usually a polite way of saying that one company has bought another one out and one of the terms of the deal was to let the CEO or Chairman of the bought company announce that it was a merger of equals.

Mergers arise because of the competitive landscape. When times are hard strong companies seek out other companies to see if the combination of the two entities would create a more competitive, cost efficient operation than either one currently is.

The stronger of the two companies will generally gain a greater market share and achieve greater efficiencies through the merger deal. A merger may also be advantageous to the weaker company who is well aware that they are unable to survive independently but that together with the stronger company all would benefit including shareholders and employees.


How does it Work?
The parties contact one another to see if a merger can be eff...

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