#1
Hello Pit. I'm in the middle of a finance project about acquisitions and mergers. So I call forth the Pit to help me in my conquest to conquer this horrible, banana-squashing (you know, being Pit Monke...nevermind >_> project.

As stated in the title: Why do acquisitions lead to job losses? Does it have to do with certain job positions ending up with more than enough labour?
#2
I feel your pain man... Went through the same sorta thing in my course.
From what I can understand, job loss is a mainly to do with the parent compant cutting schemes and jobs to give some leverage to the new balance sheet that was associated with the merger.
Also, the parent company may already have surplus workers that were previously employed with it and they wanna stick with them... And the company may wanna save on its pay roll, or just can't trade effeciently because of the large amount of staff...

Hope that helped out even a little!! Good luck with the project dude.
#3
obviously laying off staff cuts expenses in the newly acquired business, this can be good if you had to borrow money to buy out the other company and want to recoup this faster

it's possible that you don't need the full complement of staff to operate the new part of the company if they were holding excessive levels of staff or you can move staff from existing projects into the new section

increasingly (esp. in technologies) we see companies getting bought out to take control of IP, patents, brands etc instead of hoping to merge operations

but it doesn't necessarily guarantee you will be laying off staff
#4
Quote by triface
Hello Pit. I'm in the middle of a finance project about acquisitions and mergers. So I call forth the Pit to help me in my conquest to conquer this horrible, banana-squashing (you know, being Pit Monke...nevermind >_> project.

As stated in the title: Why do acquisitions lead to job losses? Does it have to do with certain job positions ending up with more than enough labour?

Do your course work yourself.

Companies may achieve economies of scale in their operations by merging the capital and resources of their company and their acquisition into one.

Acquired firms may have their operations scaled back, or reformed, by the purchasing companies vision of greater efficiencies.

Acquired firms might just essentially be stripped apart and the assets and/or remaining operations sold off.

Companies will tend to cut costs from the acquired firm, resulting in job losses.
Quote by Vornik
Thanks for the advice. I'm going to put it, along with your other advice, into a book, the pages of which I will then use to wipe my ass.
#5
huh....

They acquire more therefore causes their overall value to be inflated and they must cut jobs out to increase value.


?

I have no clue what I'm saying.
#6
I assume you mean corporate acquisitions.

Jobs are lost because when 2 companies become 1, there is an overlap of labor.

Say that the parent company has a well-established and proven accounting team. When the smaller company is acquired, do you think they will go to the trouble of training the smaller company's accountant(s) to work within their team? No. They will just keep their team and have them cover the work. And if they need more hands, it is more efficient to hire at entry-level and train them to be a part of your team from the start.
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