A merger that’s good for workers and consumers

America today is a hotbed of corporate mergers and acquisitions. Large companies take over smaller, more vulnerable ones in an attempt to expand their market share and increase their bottom line. But too often, the public loses out: prices go up, workers lose their jobs or experience declining wage rates, and customer service takes a dive.

Fortunately, the evidence suggests that it doesn’t have to be this way. In fact, research demonstrates that well-executed mergers can be beneficial to both workers and consumers alike.

At its core, a merger that’s beneficial for these two groups requires respect and collaboration between the two companies. When two organizations come together, they must collaborate to ensure that labor standards are maintained and wages are not reduced. Merging companies must also have a clear understanding of the new corporate culture and develop strategies to ensure that customers experience minimal disruption in service or quality.

Meanwhile, employees and customers both benefit from the cost-saving synergies that come with merging companies. Through the acquisition of new technologies, increased efficiency, and the ability to share resources, merger companies are better able to provide employees with higher wages and better benefits, while simultaneously passing on cost-savings to consumers.

What’s more, a good merger is an opportunity to innovate and create value for both customers and workers: It can open up new markets, facilitate the introduction of new technologies, or allow for the development of more products and services.

Of course, for a merger to be successful, there must be a good fit between two companies both in terms of strategy and culture. In addition, merging entities must create shared solutions that help each organization reach its goals. Finally, the legal framework must be strong, so that workers’ rights and consumer protection are taken into account.

Ultimately, when done right, mergers that prioritize workers and customers can benefit all parties involved: Companies receive greater market share, while employees have higher wages and more job security, and customers have access to a wider array of goods and services at a lower cost. This is the type of merger that America should seek out: one that is beneficial to all.