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Merging units can go up to +10, at this level every stat will be 4 higher than they normally are at max level
I assume you know about assets and flaws? If not, every unit summoned is randomly assigned an asset to a stat (+3/4 to said stat) and a flaw to another stat (-3/4). Any merged units will no longer have a bane.
So essentially, if you want to merge, look for the one which has the best asset (for Tiki, that's Atk or Spd) and merge the other one into it.
Alternatively, consider if any of your other units want Special Fighter. Might be more worth than merging
He's competing with a Legion of Hectors and Male Grima so yea he's a third rate unit with a 4th rate skill set
B!Ephraim is better than both OG Hector and V!Hector. He's a top axe armor along with L!Hector and Surtr.
Garm + SF is a broken combo and it gives him one of the best mixed phases in the game. Guaranteed doubles with immunity to specials means he can turn the Weapon Triangle on its head. He can run Ignis/Dragon Fang bombs in every round of combat for maximum damage or Aether for maximum sustain. His A slot is free to run Distant Counter since he has respectable bulk and his seal slot is free to run whatever the hell he wants.
He distinguishes himself from L!Hector and Surtr because his player phase is much better than theirs while also having a very good enemy phase. Compared to Grima, he is much better defensively since he has no dragon weakness and SF's Guard effect means he's protected from specials. He's a first-rate armor who has a strong niche that's completely unique to him.