The 2008 financial crisis is usually attributed to vampire squid greed. There was certainly a lot of that. But it was also just as likely to have been caused by the chaos of process created by those big, sexy bank mergers when, in the name of 'economies of scale,' critical members of the trust and responsibility chain were cavalierly eliminated.
Typical mergers happen when there are two competitors coming together, and they reduce overhead.
How do you make money? Spinoffs, split-ups, liquidations, mergers and acquisitions.
Most corporate name changes are the result of mergers and acquisitions. But these tend to be unimaginative.
Tough times helped many commodities producers become lean and mean through consolidation, mergers and cost-cutting. All that excess supply has been sopped up.
Mergers are like marriages. They are the bringing together of two individuals. If you wouldn't marry someone for the 'operational efficiencies' they offer in the running of a household, then why would you combine two companies with unique cultures and identities for that reason?
Much of what is called investment is actually nothing more than mergers and acquisitions, and of course mergers and acquisitions are generally accompanied by downsizing.
Of the 55 refineries closed in America in the last 10 years, they were all closed for economic reasons, mostly oil company mergers. Not a single one was closed for environmental purposes or objections.
Wal-Mart does not do big mergers, though it will buy much smaller competitors in so-called 'tuck-in acquisitions.'
We get talent and scale from mergers.