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Essay / Davis Group Case Study - 1370
An example of this would be the merger between Compaq Computers and Hewlett Packard, which when completed created a company with over $100 billion in revenue and a significant market share. This had the added benefit of propelling both companies higher in the stock rankings (9th in the S&P 500), making it easier to raise funds for future business plans. So in this case the merger brought market share, a larger customer base, stability, access to more money to fuel future growth, the security of being a bigger company and more difficult to buy back, and a number of synergies that have reduced costs.