I'm doing some research on the Daimler Benz-Chrysler merger and need some extra guidance.
What were the measurements that management planned to use to measure success of the deal?
What is the expected impact on the combined company's capital structure?
Any suggestions or ideas would be greatly appreciated. Graphs, charts can be used to explain the answer.
Measurements that the management planned to use to measure success:
The management planned to use the entry of Daimler Benz-Chrysler into the subcompact cars market. The capture of a part of the market from the Japanese was planned to be used as a measure of success. In addition, Daimler Benz-Chrysler expected to reduce its costs and compete more effectively on the basis of price. The management planned to use the growth of Daimler Benz-Chrysler in the world market as an important indicator of the success of the merger. The increase in geographical and product segment coverage was taken as an measure of success.
Daimler Benz (German) - Chrysler is discussed in great detail in this solution.