Operating merger
Operating merger is a merger that occurs when the operations of two companies are integrated with the expectation of obtaining synergistic gains. These may occur in response to economies of scale, management efficiency, or a host of other factors.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Operating merger. Occurs when the operations of two companies are integrated with the expectation of obtaining synergistic gains. These may occur in response to economies of scale, management efficiency, or a host of other factors.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Operating merger. A merger in which operations of the firms involved are integrated in hope of achieving synergistic benefits.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
