Newly merged firms frequently experience a loss of existing customers as a direct consequence of the merger.

Question

Quizplus · Accepted Answer

This is true because customers may be uncertain about the changes that come with the merger, such as new policies or changes in company culture, which can lead to a loss of their trust in the merged company. Additionally, the loss of key employees or changes in product lines may also cause customers to seek out alternative companies.

Newly Merged Firms Frequently Experience a Loss of Existing Customers