Vca And Mars Merger Analysis

Mergers and Acquisitions

VCA Inc. and Mars Inc.’s Merger

Notably, VCA Inc. is the largest company that offers animal care services in the United States. The firm has a network of more than 800 animal hospitals which are distributed in all U.S. states (Class Doc.). On the contrary, Mars Inc. is a U.S. based animal feeds manufacturer, which has successfully internationalized its distribution channels. Some of the main products and services offered by the Mars Company include pet foods, confectionary, a variety of domestic animal feeds, as well as animal care services. Therefore, VCA and Mars are complementary firms because VCA provides a market for Mars’s products. In this regard, VCA uses Mar’s products as raw materials for it to operate effectively;

Moreover, VCA will reduce the cost of obtaining animal feeds from other suppliers. In this regard, the merger forms a strong and responsive union, which will enable the firm to enhance its globalization platform. After the firm’s merge, taxation cost will decrease since the firms will be operating as a single company and the profits will be cumulative. Merging will also enhance economic sustainability by creating more jobs in the economy. Admittedly, the net worth of the firm will also increase and become sustainable. Markedly, Mar’s revenue has been increasing since 2014 to 2016 (787m, 845.5m, and 905.8m respectively) as evident in the company’s financial statistics. In contrast, VCA’s revenue from 2014 to 2016 is given as $1.92, $2.13, and $2.52 billion respectively (Class Doc.). These statistics prove that the merger will not only increase the company’s net worth but also enhance its market sustainability due to its high growth rate as is evident in the revenue statistics. Hence, the newly merged company will be profitable due to low operational cost and a larger market

The firm has an extensive network that includes 39 television stations, which led to a $1.96 billion revenue collection in 2016. The firm also owns ten newspaper publishers and operates in more than 179 stations in the U.S. In contrast, Sinclair broadcasting is one of the most diversified and largest television broadcasting firms in the United States. Furthermore, the organization is the leading news provider in the United States, especially in sports matters. Among the firms owned by Sinclair include multitasking network, four radio stations, and a cable network. Evidently, the two firms offer substitute services; thus, the merger will seek to reduce competition in the market and increase the operational