ExxonMobil Merger
... The merger was valued at $75 billion by analysts in 1998. The following is a description of the merger that took place in 1999 and the effects on the sales volume, profit margin, return on assets, and return on equity. We then conclude with an explanation of whether or not we feel this merger was a success. Sales Volume The sales volume of Exxon is sort of sporadic prior to the merger with Mobil as you can see in Figure 1 below. ... The sales volume the year of the merger increased to $185. ... The volume increased the year after the merger but has declined each year since. ... This is disturbing considering the fact that Exxon Mobil is considerably larger than it was prior to the merger and yet it has a smaller sales volume. ... As you can see below, the profit margin of Exxon before the merger with Mobil was 6. ... The initial merger appeared to help Exxon’s situation with the profit margin increasing to 7. ... Figure 2 Figures 1 and 2 above show that the merger of Exxon and Mobil may not have been the best merger for these companies to embark upon. Even though Exxon was losing ground in the late 1990s, we don’t think that the merger is proving to be as beneficial as expected. ... 5% when the merger became official in 1999. Shortly after the merger, the return rose to 11. ... 5 cents of profit for every dollar of assets in 2002 which puts Exxon Mobil close to the same financial position Exxon was in prior to the merger.