2007-03-21 01:34:50 · 4 answers · asked by legallady 1 in Business & Finance ➔ Corporations
No.
As an example:
The two satellite radio companies are expanding, growing new customer base every day, but to survive they are in merger talks. It depends on why the company is going to merge with another of they have downsized beforehand.
2007-03-21 01:37:36 · answer #1 · answered by Jo Blo 6 · 0⤊ 0⤋
No, usually the downsizing happens after a merger. After the merger there are redundant positions and usually the people who are in the parent company are kept, but the best of the other company are often offered a new position.
Downsizing usually happens when a company is trying to find a quick method for saving money. This could happen if they are shopping the company around and are trying to find a way to make the profits look higher than they actually are.
2007-03-21 01:45:16 · answer #2 · answered by Christopher L 3 · 1⤊ 0⤋
No, they usually downsize after they merge. Quite often a company will buy another because they're after a particular asset, not everything the other company has been doing. They'll keep the area they're after and downsize the areas they didn't really want to begin with. Also, they may already have an area covered and don't want to duplicate it. For example, they already have an HR dept., so they can let the HR people go from the newly acquired company.
2007-03-21 01:45:04 · answer #3 · answered by Annie D 6 · 1⤊ 0⤋
Yes and no. Sometimes a company will downsize to clean up their books thereby looking like a good takeover target.
Most of the time downsizing occurrs after mergers.
2007-03-21 02:53:54 · answer #4 · answered by joe s 6 · 1⤊ 0⤋