Do Mergers Create Wealth?

• Do mergers follow the wealth-creating engine of capitalism? Do they Move assets to a higher-valued use?
  • Our largest and most valuable assets are corporations.
• Ex: Dell-Alienware merger:
  • In 2006, Dell purchased Alienware, a manufacturer of high-end gaming computers.
  • Dell left design, marketing, sales and support in Alienwares hands.
  • Dell took over manufacturing through, using its expertise to build Alienwares computers at a much lower cost.