The disadvantages of a merger typically include the loss of jobs for workers and choice for customers, and the advantages are increased diversity and market penetration. Cost can be either a disadvantage or an advantage depending on location, industry and how the merger is handled.Continue Reading
The disadvantages of a merger focus mostly on the workers and customers rather than the company itself. Most mergers result in workers being laid off to compensate for the smaller combined work flow requirements, which can leave a lot of workers unemployed. It also leads to restructuring the work environment, such as the management structure, which can lead to demotions or pay changes. Customers transition immediately from having multiple choices to only one, which in some cases leads to a monopoly of the service. This can result in higher prices for the customer due to lack of competition.
Advantages include a larger workforce and more diversity within the workforce. This is a great opportunity for new ideas to emerge within the company. A merger also results in a single company having a larger market, which benefits the profits and choices for the company. Cost is most commonly an advantage since a larger company is able to make products in bulk, which is cheaper per item than making smaller amounts of the product. However, cost can be a disadvantage because restructuring the company to incorporate another can be expensive.Learn more about Investing
Quick and Reilly customer accounts were converted to the National Financial Services clearing platform in 2004, and account numbers were changed at that time in association with Quick and Reilly's merger with Banc of America Investment Services, according to PR Newswire. To find out how to cash out Quick and Reilly stocks, visit NationalFinancial.Fidelity.com. National Financial Services manages stock accounts for several broker/dealer and investment firms, according to Bloomberg.Full Answer >
According to the Houston Chronicle, advantages of a free market economy include freedom of innovation and the ability of customers to drive choices in addition to disadvantages such as the danger of the profit margin and market failures. Other advantages include a quick response to consumers' demands, a wide variety of services and goods, and efficient use of resources. However, disadvantages also include unemployment, ignored social costs, and unavailability of some goods and services.Full Answer >
Financial advisers are likely to recommend mutual stocks because of ease of diversity, reduced risk and ease of comparison, and they are solid choices for advisers of any experience level, according to Investopedia. Financial advisers are often better advised on mutual funds than they are on other securities or funds.Full Answer >
Specific motivations for a business merger are varied and may include increased growth or market share, increased diversification, market synergy or economies of scale. Mergers between two companies are agreed upon to maximize shareholder wealth through the creation of a singular business formation.Full Answer >