what is advantages and disadvantages of mergers?

Answer 1

Sometimes mergers are friendly, and sometimes not. Sometimes they are like acquisitions, and difficult for some of the people involved.

Mergers can be looked at from many perspectives. For example: employees of the acquiring company, employees of the acquired company, owners, neighbors, suppliers, etc.

I'm going to look at a merger from the point of view of an owner.

Advantages:
Gain customers quickly.
Remove a competitor.
Gain skilled employees.
Gain in size much more rapidly than by just selling.

Disadvantages:
Expensive
You may have employees you have to fire.
You may have suppliers you no longer need.
You may have inventory of a brand you no longer want to handle.
You may have employees with redundant skills that need to be retrained or repositioned.
You may have land and buildings you no longer need.
You may have to close a plant, which would upset a city or town.