The disadvantages of Mergers and Acquisitions are listed below:
Diseconomies of scale if business becomes too large, which leads to higher unit costs.
Clashes of culture between different types of businesses can occur, reducing the effectiveness of the integration.
May need to make some workers redundant, especially at management levels - this may have an effect on motivation.
May be a conflict of objectives between different businesses, meaning decisions are more difficult to make and causing disruption in the running of the business.
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When two establishments join through a merger, duplication of departments is avoided, reducing operational costs. There are some disadvantages of mergers, like job losses and creation of monopolies.
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