1. Cost Synergies: By combining operations, companies can achieve significant cost savings through economies of scale. 2. Revenue Synergies: Vertical mergers can create new revenue opportunities by offering bundled products or services. 3. Competitive Advantage: Companies can gain a competitive edge by improving their control over the supply chain and reducing dependency on external suppliers. 4. Market Expansion: Vertical mergers can facilitate market expansion by allowing companies to enter new markets or offer new products.