List the Potential Benefits and Hazards of Mergers

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The Answer is Mergers often have clearly beneficial effects.Some of the potential virtues of mergers include:
(1) Mergers permit the replacement of inefficient management,and the threat of replacement disciplines managers to be more productive.
(2) Mergers may permit stronger competition with previously larger rivals.
(3) Mergers may improve credit access.
(4) Mergers may produce efficiencies and economies of scale.
(5) Mergers frequently offer a pool of liquid assets for use in expansion and in innovation.
(6) Very often,mergers offer tax advantages.
(7) Growth by merger is often less expensive than internal growth.
(8) Mergers help to satisfy the personal ambitions and needs of management.
In addition to the frequent financial failures,other merger hazards are:
(1) Too much power is being concentrated in too few hands.
(2) A particular merger,while not threatening in and of itself,may trigger a merger movement among industry competitors.
(3) Higher market concentration may lead to higher prices.
(4) Innovation may be harmed.
(5) Some companies are so large that they can significantly shape political affairs.
(6) Some companies may have become so large that we cannot allow them to fail.

List the Potential Benefits and Hazards of Mergers

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