Riordan Manufacturing Case Study

Riordan Manufacturing Inc. can expand operations through a merger with an already existing company. Some of the benefits of a merger include increased cost efficiency, market shares, and value generation. Mergers also present the possibility of tax gains, capital cost reduction, and an increase in revenues. Even though there are many benefits to a merger, there are also issues that would be considered negative. To evaluate the option of a merger as a means to expand operations, it is necessary to research the strengths, weaknesses, opportunities, and threats with a SWOT analysis.
Merger Strengths
Strengths of a merger include the possibility of cost savings, through the reduction of debt for one or both companies. A merger also allows for