What dangers can you foresee from mergers and acquisitions?

Answer 1

Mergers and Acquisitions can lead to several dangers, including the potential for reduced competition, which may result in higher prices and less innovation for consumers. Additionally, cultural clashes between merging organizations can create internal strife, leading to decreased employee morale and productivity. There is also the risk of overvaluation, where companies may pay too much for an acquisition, ultimately harming shareholder value. Finally, regulatory hurdles can create delays and uncertainty, potentially undermining the anticipated benefits of the merger or acquisition.