is it possible to form a profitable company by merging two business failure companies?
Answer Possible, but not likely… It all depends on the reasons that the two companies are failing. If the two companies are in the business and same geographical area, competing for the same customers, and both cutting margin to compete on price, there is a case that can be made that joining the two companies, eliminating the competition, consolidating operations, cutting expenses, could render the combination profitable. However, I can think of many more examples where simply combining two unlike companies, in separate areas, would not result in any improvement.