- Liquidity for the shareholders is quick.
- The organization has the highest possibility of selling at a premium on its value especially if the acquisition is strategic.
It has a less risk compared to remaining independent or floating an IPO.
Challenges
Loss of control regarding the acquired company once it is acquired.
The target company could become integrated in the operations of the acquirer, perhaps resulting in redundancies or even a completely different business direction.
There are many more parties who have to be satisfied with the selling terms which could potentially make negotiations complicated