advantages arising out from amalgamation includes
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Disadvantages of Amalgamation
- Amalgamation may lead to elimination of healthy competition.
- Reduction of employees may take place.
- There could be additional debt to pay.
- Business combination could lead to monopoly in the market, which is not always positive.
- The goodwill and identity of the old company is lost.
The following are the advantages of Amalgamation:
- Increase in R&D facilities.
- Competition between the companies gets eradicated.
- Stability in the prices of the goods is maintained.
- Reduction in operating cost.
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