Reasons to merge a business

[cherry123]

The thing is that there will come a time that your business would no longer work out so instead of shutting it down you can merge it when ;

There's too much competition

When you need diversification for the business. So you merge and diversified

When you need more technical know how for the business to help it grow.

What are your opinions too

 

[Stardom22]

There are many reasons as to why businesses can decide to come together. When the business have gone bankruptcy, they can decide to join the business to be able to share business operation costs.

 

[Springtime]

There are many reasons why a merger takes place. It may be due to the need for additional funding; diversification of market and products, and acquisition of new knowledge and skills.

 

[hastral45]

Merger of businesses could also arise in order to control the market of their services or products.
Also where the minimum capital base as stipulated by the government could not be met up, those affected organizations would pool their resources together in order to form a merger.

 

[Yohanna]

Merger of businesses could also arise in order to control the market of their services or products.
Also where the minimum capital base as stipulated by the government could not be met up, those affected organizations would pool their resources together in order to form a merger.

It is simply joining forces and becoming stronger in the industry and so many companies are always doing this.

 

[IB D]

@cherry123 it is not all business mergers that are as a result of the business no longer working out. Some mergers have to do with gaining market share. It is better to be one big business than a fragment.

 

[Knowledge Quest]

Bankruptcy is a major reason why some people my decide to merge their business

 

[Suba]

Merger is the merging of two or more companies into one. Each business merger has different reasons but in general their reason is to expand market share or new territories, lower production and operational costs, increase profits. reduce tax payments,

 

[cherry123]

Yeah if the business is going through bankruptcy it is anoyher good reason for some people or business owners to decide to merge their business instead of shutting it down

 

[Carson20t]

Just like what others have mentioned, there are quite a lot of reasons that can make capital ventures or businesses merge. Among all these what I like the most is the fact that with a merge or contributions, you get to build something strong. Like in my case I am setting up small ventures everywhere I get to see the potential but what I am doing is creating corporations and promoting people to buy shares in those ventures. This makes us kick-start fast. The return on investment is not that much but it makes us start a business faster. So combined efforts have quite a lot of advantages.

 

[Suba]

Yeah if the business is going through bankruptcy it is anoyher good reason for some people or business owners to decide to merge their business instead of shutting it down

If the company to be merged is in an unhealthy financial condition or is about to go bankrupt, then the company that will be merging certainly doesn't want to, because it will bear risks and dangers, such as paying off outstanding debts, etc.

 

[Starmix]

Merging a business means to save . The owner can save salaries for the workers, for the electric bill, water bill, and more. If the buildings are rented, the owner could also save and pay only one building instead of two.

 

[cherry123]

Definitely, merging is always the way out for a company that is in a poor or unhealthy financial condition which is about to go bankrupt, merging the business with another can help

 

[Suba]

Definitely, merging is always the way out for a company that is in a poor or unhealthy financial condition which is about to go bankrupt, merging the business with another can help

If one of the companies is not in good financial condition and the merger is carried out, it generally only happens to government companies, but not carried out by private companies, if you are an owner of a company that is financially healthy, then my company has a lot of debt and will go bankrupt, are you willing to pay off debts? my company.

 

[hastral45]

Definitely, merging is always the way out for a company that is in a poor or unhealthy financial condition which is about to go bankrupt, merging the business with another can help

Though it is possible to merge companies that are in Financial crisis together. But in most cases, it is not feasible when one of the company is in better condition. No one would dare agree to merge with unhealthy company except to buy it off entirely.

 

[Starmix]

It is better to be that way than have all the branches closed forever. Merging does not imply bankruptcy but saving the future of the business. There are good reasons why merged businesses. That is incorporated in the planning of the business owner.

 

[cherry123]

Yeah merging is very important for companies that are not in good financial conditions it will help the other merging company to still hold it on you just have to merged them

 

[Starmix]

There are businesses here in my city being merged by the owner and the workers cried in vain. They were given a separation pay. It's for the benefit of the bussness so they forced to accept the separation pay.

 

[Heatman]

It is simply joining forces and becoming stronger in the industry and so many companies are always doing this.

This is the reason why some businesses will not just jump into merger with any partner that comes to band together with them because they know that they will not offer them much.

 

[cherry123]

That right the merging of the business is of utmost benefit of the bussness so the owner of the merged business doesn't lose much as the business is merged to make it progressive