Advantages and disadvantages of takeovers

Answer 1

Takeovers can provide advantages such as increased market share, access to new technologies, and enhanced financial resources, which can lead to greater competitiveness. However, they also come with disadvantages, including the potential for cultural clashes between merging companies, high costs associated with the acquisition process, and possible regulatory hurdles. Additionally, takeovers may result in job losses as overlapping functions are streamlined. Overall, the success of a takeover largely depends on effective integration and strategic alignment.