3. The first advantage of mergers and acquisitions is the reduced risk because company can
get the knowledge about the profitability and popularity of this brand based on its prior
performance. Additionally, to acquire a developed brand can save the marketing expense because
this brand is already identified by the customers. On the other hand, mergers and acquisitions are
not as independent as internal development, in which situation the company owns and operates
100% of its restaurants. What’s more, internal developed brand can be integrated better with other
brands in the same family than the acquired brands. Finally, most of brands developed internally
are uncommon in the industry and are more likely to reflect the new customer demand.