Pitfalls when two companies merge
Other than pricing, some pitfalls that consumers might have to deal with when two major companies merge.
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The way the companies treat customers sometimes have cause for consumers to feel the merger was not such a good idea. The customer satisfaction rating after a merger can go way down, with the merging of two companies software changes have to take place, employee’s going into new training and general knowledge of the new company can cause the consumers to take the brunt of the merge.
The customers often walk away from a merger of a company feeling very dissatisfied and when that happens it take years for the company to regain the trust again. Another area of mergers that customers have to take the brunt of the merge is when they take place the new company ends up closing some stores or offices. Which can mean the customers now has to go to another location or may not have the product available to them at all anymore. This is very discouraging for the consumer.
In a perfect capital market, what advice would you give a corporate financial manager on making capital structure decisions? Justify your advice. How and why would your advice change as real world capital market imperfections are introduced? Q : Clarify trade credit is free credit or Trade credit is free credit. Do you agree or conflicting with this statement? Clarify. Trade credit is not free. It contains a cost. Who bears that cost based on the terms of the transaction among the grantor and the recipient of the trade c
Trade credit is free credit. Do you agree or conflicting with this statement? Clarify. Trade credit is not free. It contains a cost. Who bears that cost based on the terms of the transaction among the grantor and the recipient of the trade c
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