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Written by Felix Da Silva (fdasilva@bitnip.com)
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Tuesday, 05 June 2007 |
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 While I was reading up on mergers and competition law, the
thought occurred to me that marriage itself is similar to a merger of two
undertakings. Therefore, I examined the benefits of mergers, its relation to
marriage and why it is only logical to get married.
Definition of Mergers and Marriage
Mergers can be generally defined as two or more undertakings combined to achieve benefits which improve overall performance of the undertakings involved. A typical merger happens when an undertaking which possesses a set of qualities or resources sees another undertaking which has a certain quality or asset that they desire. The combination of the two undertakings will create a single undertaking that is more than the sum of its parts.
Marriage can also be similarly defined as two income earning individuals combining to achieve a set of benefits which improve the overall performance of those two individual involved. It usually happens when an individual with a set of qualities or resources sees another individual with certain qualities and resources that they desire. The merger of the two individuals, called a marriage, will create a single entity that is more than the sum of its parts.
Since marriage and mergers are similar, let’s look at the benefits enjoyed by a successful merger and how these benefits apply to a merger of two individual if successful.
Economies of scale
Simply put, economies of scale can be said to be anything that helps save costs when the scale of operations increases. Cost savings can be acquired by sharing the costs of property and equipment among the merging undertakings.
If you are single, rent and live alone, the rent of a flat for a single individual is typically more expensive than sharing the cost of the flat with two individuals. In addition, you need your own set of appliances, utensils, car and so on. If you are married, there is no need for a duplication of those resources which results in cost reductions.
In addition, getting married lowers the overall cost of operation per individual and it also increases the amount of money that is available to both individuals by combining their incomes. The increase in disposable income opens up more options to these individuals such as vacations, more expensive equipment and other resources otherwise not available before marriage.
Increase in productivity and efficiency
An increase in productivity is where one can produce more in a certain time frame than it was possible before. In a merger, an increase in productivity occurs because of the combination of resources such as their manufacturing facilities or human resources. Also in a merger, each undertaking can focus on what they are best at which makes them more efficient in production and thus an increase in productivity.
Once married, the individual resources are usually pooled together. Instead of doing all the tasks such as cooking, service the car, fix the computer or paint the walls, it can now be split amongst two individuals. The increase in human resources allows for a certain task to be performed quicker due to the ability to specialize by allocating tasks to the individual that is best suited for that particular task.
Being able to specialize is one of the most important aspects in mergers since it permits tasks to be done faster and with higher quality. If an individual is good at cooking, not only will the meal tastes better, it will also be done quicker.
Since each individual is doing tasks that they are good at and having the number of tasks divided among two individuals, it should result in more free time than if you were single.
Ability to modernize
The ability to modernize describes an undertaking that updates itself either structurally or technologically. This happens during a merger since the two undertakings will usually have to restructure or consolidate their assets and resources. Therefore it is a good time to take the chance to modernize as well.
When you’re married, there’s a good chance you’re moving and changing things around. It is an ideal time to learn new fun things such as mortgages, down payments and the like if you haven’t already. If this is the first time the married couple is living together, one of the individual usually will have a lot of modernizing to do. Examples include his choice of furniture, art work and decoration.
Conclusion
With all these benefits that can be derived from being married, it is only logical to get married. What is more romantic than getting on one knee and saying, “Would you like to pool our assets and resources together to achieve productive and economic efficiency?”
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