Pros

Growth Opportunities: Enables companies to expand their operations, enter new markets, or acquire new technologies.
Leverage Benefits: Using debt can amplify returns if the acquired company’s performance improves.
Strategic Gains: Acquiring a competitor can enhance market position and reduce competition.

Cons

Financial Risk: High levels of debt can strain the acquiring company’s finances, especially if the acquisition does not perform as expected.
Integration Issues: Merging different corporate cultures, systems, and processes can be challenging.
Regulatory Hurdles: Ensuring compliance with all legal and regulatory requirements can be complex and time-consuming.
Overvaluation: Paying too much for the target company can negate the expected benefits of the acquisition.