ABSTRACT
Merger and Acquisition The potential advantages from merger and acquisition will be related to the prospect of achieving synergy effects, for example economies of scale and economies of scope advantages. Synergy occurs if the interaction between two or more forces results in their combined effect being greater than the sum of their individual effects. In the case of a merger, the synergy effects make the value of a merged company greater than the sum of the value of the two individual companies (Brown, 1995).
