Are transatlantic mergers a good idea?

The announcement last week that UK firms Hammonds merge with a US firm Squire Sanders & Dempsey is just the latest in a string of transatlantic tie-ups. This article observes the development of the trend of mergers between British and American firms and asks whether they are a good idea. It is suggested that the growth strategy is one that is intended to pull in more work to support the careers of associates who demand promotion to the partnership. Mergers also give a firm greater global reach and can capitalise upon strong brand identity from the merging partners. But these mergers are not without their difficulties, and there have been many failures – mergers that failed to retain the core business of the merger partners, or mergers that did not resolve clashes of culture.

Are transatlantic mergers a good idea? cityam.com Wed, Sep 8, 2010