The major cost of a merger is the:

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The premium the acquirer pays to the target firm is typically the biggest cost of a merger. This premium represents the difference between the current market price of a target firm and the higher price paid by the acquirer to gain control of the firm. Legal fees and the cost of restructuring are also significant costs, but they are usually smaller than the premium paid. The reduction in free cash flow is not necessarily a cost of a merger, but rather a potential consequence of poor management or strategy after the merger.

The Major Cost of a Merger Is The