External growth - Merger

What is a merger?

The dictionary definition of a merger in the business or commercial context is "the combination of two or more companies, either by the creation of a new organization or by absorption by one of the others." 

The underlying logic of mergers is that the resulting enterprise will be stronger than the combined resources of the individual companies.  This is described as synergy, and it offers more business possibilities.  It also has the advantage that there will be less competition as a result of the merger, although this depend on the guidelines of a monopoly commission.

WHAT ARE THE MAJOR ATTRIBUTES OF A TRUE MERGER?

1.  TEAMWORK
2.  SHARING
3.  NONDOMINATION
4.  MUTUAL BENEFIT


THE FINANCIAL STRUCTURE FOR A MERGER IS:

Company "A" Shares ----->  COMPANY "C" SHARES

Company "B" Shares ----->  COMPANY "C" SHARES


IS THE TIME RIGHT FOR A MERGER?

Ascertaining whether the time is right for a merger depends on the state of your business relative to the market and to the competition.