[Gabriel Caser]

Considering a sale, for example, of non-core assets that no longer held relevance in the seller’s portfolio, such a transaction can create jobs when viewed in the broader macroeconomic development context—and not solely within the acquired company—since the acquiring firm would be motivated to ramp up production, fueling investments that boost the local GDP.

[Rodrigo Tcacenco]

Agreed, M&As ultimately create jobs. When an acquisition is well executed, although there may be initial consolidation of jobs, in the long-term growth of the business will most likely generate more jobs.

[Trevor Cassaberry]

It really depends on the nature of the merger or acquisition. If a company that deals in raw materials acquires another company in a completely different industry say, retail sales there’s often a need to retain employees from both sides because they perform distinct functions. In that case, M&A can actually create jobs to bridge operational gaps between the two businesses. On the other hand, if the acquired company operates in the same industry with similar roles, there tends to be a lot of overlap, especially in departments like HR, finance, and admin. That’s when job losses become more likely as the combined company looks to reduce redundancy. So ultimately, whether M&A creates or destroys jobs depends on how aligned or overlapping the two businesses are.

[Darragh McKiernan]

I agree with many points, and believe it should and does ultimately create jobs. It sometimes as Trevor says depends on the quantity of “overlap” and the size of the companies. Perhaps in some very smaller companies a single person may be doing 75% of one role and 25% another so there may be opportunities for this person to give the 25% to another person and focus on their core role. It’s completely dependent on the size of the company and the functions. The best deals are ultimately ones which keep the right people in the right seats and allow them to thrive.

[Mery De Pra]

I think M&A can both destroy jobs (rationalization of overlapping activities – for instance Finance, backoffice, CS, etc) and creates new job opportunities and personal development within the companies (for instance, larger responsibilities, new tasks in the NewCo resulting from the merger, etc)

[Author]

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