1) market share will increase, which is beneficial to competition.
2) More concentrated talents are conducive to competition.
3) The merger will bring economic benefits and interest competition.
4) In the process of merger, a large amount of free cash usually flows into shareholders' hands to improve their returns. At the same time, the reduction of free cash will improve the efficiency of enterprises and will not let managers squander or speculate.
Disadvantages of company merger:
1) mergers and acquisitions often fail. The market share after the merger is lower than that before the merger.
2) In the process of merger, talents may be lost because of office politics. If talents go to competitors, the situation will be even worse.
3) In the process of merger, the difference of corporate culture will lead to the decrease of efficiency.
4) Anxious layoffs affect operations.
5) If M&A is leveraged buy-out, it will bring high debt and worsen the company's financial situation. Like PCCW. When two companies have similar resources, they can share the resource cost after the merger. If the merger helps both parties to reduce costs and earn more, they will merge.
The disadvantage of the merger of bosses involved in the two companies is the way to get along. In addition, there are often problems in the distribution of manpower. ,