Replies to post #2054 on Biomass Secure Power Inc. (BMSPF)

[Nafariouss]

Iam all for it... hehehehe
Perceived pros and cons of a "takeover" differ from case to case but still there are a few worth mentioning.

Pros:

1. Increase in sales/revenues (e.g. Procter & Gamble takeover of Gillette)
2. Venture into new businesses and markets
3. Profitability of target company
4. Increase market share
5. Decrease competition (from the perspective of the acquiring company)
6. Reduction of overcapacity in the industry
7. Enlarge brand portfolio (e.g. L'Oréal's takeover of Bodyshop)

Cons:

1. Reduced competition and choice for consumers in oligopoly markets
2. Likelihood of price increases and job cuts
3. Cultural integration/conflict with new management
4. Hidden liabilities of target entity.