Question 11.S-tQ.3: Why might growth by acquisition not be in the best interests...

A number of arguments have been advanced against using acquisitions and mergers as a way of achieving growth:

• the bid might be referred to the Competition Commission and so be delayed and even refused;
• the bid might be contested and result in an unpleasant battle;
• the only beneficiaries from mergers and takeovers are target company shareholders;
• financing a takeover is expensive;
• it is difficult to achieve post-merger integration.