Often, companies must grow to compete in today s international markets and a merger allows them to earn international exposure. Simply put, mergers occur when corporations attempt to achieve market efficiencies through competitive agreements or by combining efforts to grow in size and compete in new markets. The constant pressure from competition, both at home and abroad, keeps even large companies in check. There is also a perception that mergers result in widespread job loss. In fact, while we are experiencing more mergers than ever today, we are enjoying a period of record-low unemployment.
Corporations merge for growth opportunities and as companies grow they typically add employees.
While temporary job loss may be associated with a specific merger, today s mergers are a sign of a strong and dynamic economy. Enhancing economic growth builds prosperity and creates jobs. The alternative to a company merging and increasing its efficiency is for that company to fail, which would have far more disastrous consequences for all of the company s employees. In what has become a global marketplace, it is difficult for one company, no matter how large, to eliminate the competition which is why it is hard to believe the allegations that mergers result in less competition. Consider the automobile market.