Companies have been maximizing profits by merging or acquiring other businesses within their
industry. Mergers and acquisitions are when two companies form into one of the two companies.
The company with less importance basically loses its identity and becomes a part of the more
dominant company. The surviving company assumes all the rights, privileges, and liabilities of
the lesser or merged company. Corporations who are able to merge or acquire another company
are able to expand upon their ability to forge partnerships with other corporate leaders.
Sometimes they are able to expand their services internationally to gain more profit and extend
their brand. Mergers and acquisitions represent the ultimate change for a business. It is the most
difficult, challenging, and chaotic event a company will ever have to face. But they are the most
normal way of life within the business world today. In today’s society mergers are sometimes the
only chance for survival. Two companies together can sometimes be more valuable than two
separate companies. Corporations such as Public Storage have experienced and benefited from
acquisitions in ways that corporations, such as Dahn Corporation, have not.
Public Storage opened its first self-storage facility in 1972. They currently operate over 2,200
storage facility locations throughout the United States and Europe. Public Storage is known as
one of the largest landlords in the world (publicstorage.com).
Dahn Corporation has been in business for over thirty years. Dahn Corporation is a real estate
investment an asset management company. They currently manage approximately 90 Mini U
Storage facilities located throughout the United States (miniustorage.com).
For the corporation that has acquired another company, merged with another company, or
been acquired by another company, evaluate the strategy that led to the merger or
acquisition to determine whether or not this merger or acquisition was a wise choice.
Justify your opinion.
In 2006, Public Storage took control of Shurgard Storage Centers Inc., including their European
locations, making Public Storage known as the world’s largest storage facility
(publicstorage.com). Shurgard Storage Centers Inc. and Public Storage Inc. approved a merger
agreement where Public Storage acquired Shurgard for approximately $5 billion
(insideselfstorage.com). Public Storage issued approximately 38.4 million shares of stock,
assumed approximately $1.8 million in debt, and redeemed $136 million of Shurgard preferred
stock (insideselfstorage.com).
I believe that Public Storage made the right decision in acquiring Shurgard. In 2006, Public
Storage had interests in 1508 storage facilities and was located in 37 states. Shurgard operated a
network of 656 storage centers located throughout the United States and Europe. Public Storage
saw an opportunity to use their resources to increase their profits as well as the success of the
