What are the major advantages and disadvantages of mergers and acquisitions?What are the major advantages and disadvantages of mergers and acquisitions?These are 6 discussion quest is that needs responses to EACH question six in total. APA format atleast one paragraph in length cite in paragraph wherever needed and no cover sheet needed. This is a MBA Level course so grammar and reference page needed.1.e term acquisition is “the incorporation of one firm into another through purchase” (p.193). With acquisitions one organization buys another it can be either through stock purchases, cash, or the issuance of debt. The term mergers is “the combining of two or more firms into one new legal entity” (p.193). Mergers is the combination or consolidation of two firms to form their new business. Mergers tend to be more of the rare instances and have to have a transactions among the two firms on a total equal basis. Even though there are some differences between both they are basically the same. Some advantages of mergers and acquisitions “are that it can help an organization expand its products and offerings and services, it can provide the opportunity for firms to attain the three bases of synergy-leveraging core competencies, sharing activities, and building market power, they can also lead to consolidation within an industry and can force other players to merge, and corporations can also enter into new market segments by the way of acquisitions” (p.194-195). Even though acquisitions and mergers have some good advantages they also have some limitations. The first limitation is , “the takeover premium that is paid can be high” (p.195). An interesting fact is that with an company that is taking over two of three times the stock price falls once the deal is made public. Therefore, it is in a companies best interest to not pay a higher premium over the acquiring company’s stock price due to it being a poor strategy. The second limitation, is “competing firms often can imitate any advantages realized or copy synergies that result from the M