Family Dollar Tree Merger Analysis

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On May 21, 2015 Dollar tree announced its plans to re-banner Family Dollar as soon as the acquisition is complete which is anticipated to be this summer. This has taken a while for the final merger to take place. The shareholders of Family dollar voted to merge with Dollar Tree in January 2015 over rival store Dollar General. This ended the battle of the dollar store giants. The reason for the merge with Dollar Tre over Dollar General was due to antitrust fears, the business reasons were to avoid rushing in with dramatic changes to either format. These two companies operate under very different models. For the corporation that has acquired another company, merged with another company, or been acquired by another company,…show more content…
This merger will diversify the companies and enable them to build on progression and position the Dollar Tree for accelerated growth, by offering both fixed-price and multi-price point formats and an even a more compelling merchandise assortment, enabling these companies to provide for greater value and choice to a wider group of customers (Dol14). By merging Dollar Tree with Family Dollar the long term profitably by both are within reasonable range for the consumers. This will meet the needs of the urban and lower class due to price affordability. For the corporation that has not been involved in any mergers or acquisitions, identify one (1) company that would be a profitable candidate for the corporation to acquire or merge with and explain why this company would be a profitable target. Dollar General was not involved in the acquisition of Family Dollar by Dollar Tree, although they did try. The high profitability acquired by Dollar General would show reduced prices that are more affordable to both urban and lower income families. Had Dollar Tree also acquired Dollar General it would give them high leverage in order to regulate reasonable…show more content…
By its transformational process, it does not detract from one another (Dollar Tree/ Family Dollar). Based on the merger direct and indirect sourcing, overhead reduction, logistics, and re-banning. A run-rate synergies should shake a major and considerable gain by the third (3rd) year of. Much of foreseen and projected gain will largely be due to the assigned and designated “Integration Teams,” designed just for intricate detailed plans of strategies, tasks, and objective milestones in order to achieve their missions priority—to increase value and best meet the consumer’s needs on the availability and assortment of
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