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Merging of two companies provides certain benefits of scale, because the support organization can be reduced. In addition, the two companies together also have combined intellectual properties, patents, production power and distributive network.

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Q: Why is the merger of the two companies advantage?
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Related questions

What is it called when two or more companies work together?

joint venture


What is a merger in business finance?

A merger combines two companies or corporations into a single structure. Often a smaller company will become a subsidiary of a larger company, or two large companies (e.g. Chrysler and Daimler-Benz from 1998 to 2007) will combine to gain some advantage in finance or competition.


What typeof merger does the passage describe?

A merger is when two companies are selling different produces. It happens when the companies are on different levels.


Are 401k loans paid off when there is a merger of two companies?

No


Disadvantages of a merger?

the smaller companies are put out of business the smaller companies are put out of business


What is the combination of two or more companies into single firm called?

A merger


How do you use merger in a sentence?

The merger between the two corporations fell through.Many companies create mergers when their services overlap.


What is the definition of vertical merger?

Vertical merger is between two companies that is producing different goods. This happens when two different firms are on different levels.


What is a combination of two or more companies to form a single business?

A merger.


When two companies combine to form a single company is called what?

When two companies combine to form a single company, it is called an amalgamation or merger.


Can a merger be considered a means of raising additional equity capital?

Yeah, in some case it is considered as a means for raising additional capital but only in the case when one of the companies is financially strong then such a merger is profitable and according to activetrader-links.com if two companies with same strengths or weaknesses do a merger then such a merger will be in vain.


What is a merger mostly used for?

A merger is when two companies combine forces. Mergers mostly involve one stronger company absorbing a smaller or weaker one, or two companies under a larger one being combined to reduce waste, or costs.