Who Benefits When Companies Merge?

Who benefits when companies merge?
Name
Institution
Course
Instructor
Date
Who benefits when companies merge?
Firms must implement strategic approaches to improve their competitive advantages within this constantly evolving generation. Participating in a merger or acquisition is one of the critical ways for a company to stay ahead of the business landscape (Haeruddin, 2017). A merger is a business transaction whereby two independent organizations combine to form a single emergent entity for beneficial business practices (Malik et al., 2014; Lin et al., 2013; Ombaka & Jagongo, 2018). When firms merge, various stakeholders benefit.
Apart from the company, employees also benefit from two or more companies merging. Most importantly, they might offer opportunities for workers of both companies and allow diversity or inclusion. For example, Lambert (2021) stated that mergers transform the companies’ status quo and help marginalized groups like women shift up the organization's ladder. Mergers can affect local communities positively. For instance, if the merged corporation increases its processes or capitalizes on new resources, residents in a specific locality can access numerous job opportunities, work and raise significant incomes (Brue, 1971).
Thirdly, customers gain when organizations come together in the business deal. They benefit in several ways. The commonest benefit is accessing high-quality products and services (Alvarez-González & Otero-Neira, 2023) that the merged entity creates, trying to meet the customers’ needs and be unique as much as possible. Fourthly, suppliers can easily negotiate sustainabl...