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Assignment 2: Mergers and Acquisitions

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Look up at the sky, it's a bird, it's a plane, no it really is a plain. All across the United States and all over the world there are a number of companies that are constantly seeking to expand each by a number of different means; some companies are going public, others are buying assets from other companies, and some companies are merging. Mergers happen every day whether we realize it or not there are a number of different smaller companies out there that either by or acquire another company's assets or acquire the whole company itself. The whole merger process can be complicated and also can be quite simple one company seeks to expand and another cease to liquidate some assets, the reasons for this are as different as each company. One company can be going bankrupt, another company can be poorly managed, and another company may have just expanded too fast and collapse under its own weight; one thing is for sure there are good mergers and then they are bad mergers. Some mergers can actually benefit its consumers by giving them better service and combine the best of two companies into one, however a merger of two companies or more can result in a limited choice of options when choosing one firm from another to do to do business with. In fact this can be so tricky that with some of the mergers with the more larger companies have to be regulated by the federal government, as far as the United States is concerned. This concern can be so big that if too many companies in the same field merge it will begin to create monopolies, with this diversity is limited selection is limited and is the consumer that will pay. If certain companies are allowed to become monopolies they can corner and control their markets and literally drive the price of the goods and services up, almost to the point were consumers are paying entirely too much just for their products and

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