Mergers or acquisitions are the methods by which two companies-01115
This subjective question is related to the book/course
vu eco401 Economics.
It can also be found in
vu eco401 Mid Term Solved Past Paper No. 4.
Question 1: Mergers or acquisitions are the methods by which two companies combine to form a larger company. What can be the reasons for acheiving mergers or acquisitions?
Answer:
The 1st reason for acquisition and merger to combine is that they believe that synergy exist and by joining both of us can achieve something more than we can get individually.
Acquisition and merger join to spread its risks and exploit new markets.
Acquisition is essential for growth.
Companies seek an acquisition because they believe that a good investment is capable of generating a high return for the parent company's shareholders.
