Pros and Cons of Mergers

A look at the pros and cons of mergers. Are mergers in the public interest or are mergers just beneficial for top executives and shareholders? When looking at mergers it is important to look at the subject on a case by case basis as each merger has a different possible benefits and costs. These are the most likely advantages and disadvantages of a merger. Pros 1. Network Economies. In some industries, firms need to provide a national network. This means there are very significant economies of scale. A national network may…