It is false that mergers and acquisitions typically have no impact on the large financially strong firm's customers and clients.
A merger is basically an agreement that unites two existing companies into a new company. There are different types of mergers. An acquisition is basically when one company purchases most or all of another company's shares to attain control of that company. The impact of merger or acquisition on the customers could be positive or negative depending on the market and competition in the market.
Mergers may decrease or increase the choices available to consumers. Mergers sometimes improve product quality, which benefits consumers. A merger or acquisition may allow the remaining companies to implement coordinated price increases by eliminating competitors.
A merger between two money-losing retail stores might lead to a reduction in the number of items on sale as the combined entity reduces overhead costs and drives profits. Sometimes merger leads to happy customers by improving customer services.
Therefore mergers and acquisitions impact the clients and customers.
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