Merger

A merger is a business strategy in which two or more companies combine to form a single entity. The new entity is usually larger than the original companies and is often referred to as a “merged company” or “merged entity”. Mergers are typically used to increase the size and market share of the combined company, as well as to diversify its product offerings and customer base. Mergers can also be used to reduce costs and increase efficiency by eliminating redundant operations and personnel.

History of Mergers

The concept of mergers has been around since the late 19th century, when companies began to combine in order to increase their size and market share. The first major merger in the United States was the merger of Standard Oil and the American Tobacco Company in 1911. Since then, mergers have become increasingly common, with the number of mergers increasing steadily over the past century. In the United States, the number of mergers has increased significantly since the 1980s, with the number of mergers reaching an all-time high in 2000.

Comparison of Mergers

Summary

Mergers are a common business strategy used to increase the size and market share of a company, as well as to diversify its product offerings and customer base. Mergers can also be used to reduce costs and increase efficiency by eliminating redundant operations and personnel. Mergers can take many forms, including horizontal, vertical, and conglomerate mergers, each of which has its own benefits and risks. For more information on mergers, visit the websites of the U.S. Securities and Exchange Commission, the U.S. Department of Justice, and the Federal Trade Commission.

See Also

• Acquisition
• Divestiture
• Joint Venture
• Consolidation
• Synergy
• Spin-off
• Hostile Takeover
• Leveraged Buyout
• Strategic Alliance
• Restructuring

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