A model for business combinations

A procedure is developed to predict the performance of combinations of two businesses for comparison with the performance of the businesses operating individually. Included are general relationships of combined performance, the definition of several types of combination and their simulation using previously developed business models. A large number of computational experiments are performed to show the effect of the different types of combination, environment, management strategy, business model inaccuracies and of uncertainties in knowing efficiency factors and learning-curve coefficients.