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MBA 610 MBA610 MBA/610 Megamerger Presentation 05-18-17

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MBA 610 MBA610 MBA/610 Megamerger Presentation 05-18-17

WHAT IS A MEGAMERGER?
The Concept
A merger is simply when two companies come together as one company
A megamerger is this same concept on a grand scale
Typically, the companies involved are of significant valueThe Opportunity
The new company would have increased market share
The company could possess more market powerThe Potential
The company could have little to no competition
The company would be able to establish the market price of the good

Description

MBA 610 MBA610 MBA/610 Megamerger Presentation 05-18-17

WHAT IS A MEGAMERGER?
The Concept
A merger is simply when two companies come together as one company
A megamerger is this same concept on a grand scale
Typically, the companies involved are of significant valueThe Opportunity
The new company would have increased market share
The company could possess more market powerThe Potential
The company could have little to no competition
The company would be able to establish the market price of the good
THE REGULATING BODY
The Federal Trade Commission (FTC) is an independent commission tasked with protecting consumers
The FTC enforces antitrust legislation
Sherman Antitrust Act of 1890
Known as the “competition law”
Law aims to prevent the rising costs of goods associated with artificially restricting supply
Clayton Antitrust Act
This act attempts to reduce anticompetitive behavior
Law prohibits mergers that are intended to reduce competition and/or create a monopoly
BENEFITS OF A MEGAMERGER HAPPENING
Companies
Gain market share
Access to talent and industry knowledge
Increase customer-baseConsumers
Increase access to a particular good
Lower cost of goodsOther Businesses
Increase research and development of productsEconomy
Wider array of products available
Combined technology & resources allows for greater innovation directly after the merger.
DETRIMENTS OF A MEGAMERGER
Companies
Could be too large and unable to respond to the market
Diseconomy of scaleConsumers
Cost of goods determined by company – potential for higher price
Fewer choicesOther Businesses
High cost of entry into the industry
Competing against a company with more resources
Manpower

MBA 610 MBA610 MBA/610 MEGAMERGER PRESENTATION 05-18-17

MBA 610 Business Law School: Southern New Hampshire University (SNHU) *Professor:James Boswell, schneider, ProfessorGeriDreiling,J.D, sa… Documents (2363) Q&A (32) Textbook Exercises Business Law

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MBA 610 MBA610 MBA/610 MEGAMERGER PRESENTATION 05-18-17

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MBA 610 MBA610 MBA/610 MEGAMERGER PRESENTATION 05-18-17

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