Samuel Johnson, Inc. and Jeremy Company Merger The Jeremy Company and Samuel Johnson, Inc. have exhibited the desire to merge their companies and allow us the opportunity to evaluate the use of information in this common business tactic. Through our investigation of the merger we can attempt to forecast the end result by detailing potential problems and obstacles through the examination and the allocation of information and resources from within the corporation.
We have provided a list of the most critical questions below that one should ask to gain an understanding of the process that companies should go through when considering to merge. The knockdown effects of the decisions must be considered and played out within the context of ones mind before a decision is made to move forward.
First and foremost, the companies should ask why merge? A merger usually consists of one company buying another company in order to renew deteriorating businesses, diversify its product line, and/or eliminate its competition.
We then find the need to inquire into the reasoning for Samuel Johnson wanting to merge with the Jeremy Company. With Wall Street clearly already fond of Samuel Johnson, stock up to $85 vs.$10 five years ago, we must question the internal motivations of the company. Diversity comes to mind as a motivation with the knowledge that Jeremy Company possesses a market share, which Samuel Johnson must plan on incorporating into their overall business plan as a means to catapult their current value. Samuel Johnson is already riding high and could easily expand enabling them to diversify, grow and eliminate competition simultaneously. The Jeremy Company, on the other hand, seems to be in trouble and on a down swing with there stock at $65 vs. $75 five years ago. As the Jeremy Company is widely regarded as...