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Whenever there is merger, some stakeholders are made to pay. This merging would favors some whilst unfavor some. Some workers would be lay off. Management would change. New system would be adopted. The success of merging depends on how sincere each parties is to the merging.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.
It is true! when businesses cannot manage to actively compete in the industry, they would have to merge.Most companies merge when they reach a point where they no longer have the needed resources to manage and run the business or when they are currently in debt, the only way out is to merge with others.
Of course business mergers are oftenly very helpful for business that are on the verge of collapsing or going to the bankruptcy state. With that being said the merger can help salvage the business by supporting each other.merging a business is one of the toughest decisions to make but it is a very good decision especially when you're running out of cell or you're running so many losses on your business you merge with another one that re-establish your sales.
You are right about mergers making businesses more competitive. The challenge is that most businesses always run from the standpoint of selfishness instead of opportunities. When a business merges with another there is a wider scope of opportunities available for both businesses.merging a business can make them to be more competitive. It can also help businesses to put ideas together in order to achieve a lot of growth on the long run.
There have been so many businesses that I know in my country there they merged with others and most of them are usually Banks that merge with another bank and then form another name for the merger.Of course business mergers are oftenly very helpful for business that are on the verge of collapsing or going to the bankruptcy state. With that being said the merger can help salvage the business by supporting each other.