The benefits of a successful merger are many and varied. Merging with another firm enables critical mass to be acquired immediately, thereby creating a platform to strengthen presence within certain markets or sectors, diversify the range of business offerings, boost presence in certain geographic locations and recruit individuals en masse.
However, while a merger may be undertaken to drive both growth and profit, poor execution may end in failure, leaving a firm that may indeed have greater critical mass, but with stunted growth, reduced profitability, a confused identity and lacking clear strategy and direction.
