Three generally recognized advantages are:
- Resource & Risk sharing - In other words, assets and liabilities of the two parties are combined, so there are more resources to work with, however, in the event that costs increase or risk increases, that is also spread amongst the parties.
- Adaptive capabilities - Organization form of an alliance is more flexible than traditional M&A and formal integration, which allows for iterations as different needs arise or conditions evolve
- Speed of engagement - Formal and legal requirements of integration / M&A may take much longer than forming an alliance
