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Due to the merger of Konecrane’s with MMH the expected financial outcomes were increased from the previous year. For 2006, Konecrane’s expects to receive in 2006 an increase of 35 % in sales which is 10% greater than in 2005. Konecrane expects that in dollars that with the addition of MMH the sales will be around $1.9 billion. In 2005 MMH total sales were around $170 million, in just half the time, in 2006 the expected sales are going to be around $220 million. This merger has increase Konecrane’s total sales by $50 million in one year
In the merger with U.S. Power Systems, the financial outcomes look very prosperous. Tilapia sales are expected to increase in 2006 from 2005 by 226%. The sales of tilapia in 2006 alone in the industry in the U.S. were around $1.17 billion. This merger was in the best interest of U.S. Power Systems because these sales are expected to more than double in 2-3 years, which means that the company will be able to purchase additional similar companies such as Premier in the future.
For the most part any merger that is made is thoroughly though and it may be years become a company decides to try to merge with another company. Areas that are examined are the other company’s stability and potential earnings. Other factors are what type of reputation does the company currently have in the industry and will the company supplement the current existing business operations that have made the company purchasing successful thus far....