Advantages of Acquisation.

Advantage of acquisition are :

* Speed :It provide ability to speedily acquire resources and competencies not held in house.It allows entry into new products and new markets.Risks and costs of new product development decrease.

* Market power :It builds market presence.Market share increases.Competition decrease.Excessive competition can be avoided by shut down of capacity.Diversification is aggrieved.Synergistic benefits are gained.

* Overcome entry barrier :It overcomes market entry barrier by acquiring an existing organization.The risk of competitive reaction decrease.

* Financial gain :Organization with low share value or low price earning ratio can be acquired to take short term gains through assets stripping.

* Resources and competencies :Acquisition of resources and competencies not available in house can be a motive for merger and acquisition.

* Stakeholder expectations :Stakeholder may expect growth through acquisitions.

Disadvantage of acquisition are:

* Speed :It provide ability to speedily acquire resources and competencies not held in house.It allows entry into new products and new markets.Risks and costs of new product development decrease.

* Market power :It builds market presence.Market share increases.Competition decrease.Excessive competition can be avoided by shut down of capacity.Diversification is aggrieved.Synergistic benefits are gained.

* Overcome entry barrier :It overcomes market entry barrier by acquiring an existing organization.The risk of competitive reaction decrease.

* Financial gain :Organization with low share value or low price earning ratio can be acquired to take short term gains through assets stripping.

* Resources and competencies :Acquisition of resources and competencies not available in house can be a motive for merger and acquisition.

* Stakeholder expectations :Stakeholder may expect growth through acquisitions.