Many companies decide to merge with one another due to business strategies or financial concerns. A merger is basically the combining of two or more companies. Mergers have many advantages and disadvantages that companies consider before officially committing to. Mergers are legally simple and easy for companies to perform. Compared to most forms of acquisition, mergers are a much cheaper option
. for companies to consider. They are also great for decreasing the amount of competition in a particular companies field of business. Companies that merge together have the opportunity to exchange business ideas and strategies. Mergers allow them to discuss weak areas of their company, and work together to resolve those areas. When two companies combine together they appear more reliable, which can lead to more confident or loyal customers. All these advantages can provide substantial gains in profit for companies that agree on a merger. Mergers are often very beneficial to companies, but there are many disadvantages that they must consider. Stockholders decide on whether or not a merger should take place. If the majority of a firm's stockholders do not agree on a merger then the firm can not proceed with a merger. Usually, at least two thirds of all stock holders within a company must approve the decision. Stockholders have to agree with the executive decision, which means companies have to spend a decent amount of time convincing the stockholders. Sometimes, companies that merge realize they have conflicting business strategies, and end up spending more time than necessary making decisions for their company. One of the important disadvantages of mergers is that they often create employee dissatisfaction, due to merging companies having two people for one position, which leads to workers being let go. Mergers are often rewarding and beneficial for companies, or complete failures for other companies. There are many things to consider before companies officially decide on a merger. http://voices.yahoo.com/the-advantages-disadvantages-mergers-2171838.html or http://www.urbanabusinessalliance.org/advantages-and-disadvantages-of-business-mergers.htmlhttp://www.reference.com/motif/business/advantages-of-merging-a-company
