Berry's Bug

Weaknesses do come along with the strengths of acquiring another organization in the same industry. A company the size of Berry's Bug Blasters has a completely different set of rules for acquiring another pest control company than a larger company has acquiring a similar company. However, some of the same weaknesses are prevalent. For instance, over the last few decades there have been more mergers that failed than succeeded. According to investopia.com an estimated 66% percent of mergers fail. A few popular examples of this are the 2008 Bank of America and Merrill Lynch merger, the Quaker Oats Company 1994 acquisition of Snapple Beverages, and the 1994 acquisition of Wordperfect from Novel. All of which failed in their attempted mergers. The compound annual growth rate of the last two examples was less than .775 in a system where 1 is the industry standard.

Merging two like companies has bad affects on the industry itself. Other companies innovations could help Berry's Bug Blasters expand without the cost of acquiring said company. And by merging the two companies, ideas, innovations, and thinking patterns can be lost. The acquiring company's management could have trouble dealing with new employees.

Berry's Bug Blasters are thinking of a horizontal acquisition. Which would mean Berry's Bug Blasters will be considering purchasing a pesticide company. The new company will bring with it new accounts that need to be maintained by qualified individuals. Management styles and regulations may be different in the companies causing friction between existing policy and new policy. Standards may be different which in turn could lead to consumer loss.

Consumers can be affected by a merger of Berry's Bug Blasters for the same reasons. Management, employee, and work standards may change for the worse. Consumers may not receive the service or service provider they want to, leading to consumer loss. As with any pest control business, the opportunity for business is...