Many companies have serious discussions aboutmerging. Sometimes these discussions lead tomergers, sometimes not. What are some factorsthat should be considered and that affect the likelihood of a merger actually being completed?

Many companies have serious discussions aboutmerging. Sometimes these discussions lead tomergers, sometimes not. What are some factorsthat should be considered and that affect the likelihood of a merger actually being completed?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter26: Mergers And Corporate Control

Section: Chapter Questions

Problem 8MC

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Question

Many companies have serious discussions about
merging. Sometimes these discussions lead to
mergers, sometimes not. What are some factors
that should be considered and that affect the likelihood of a merger actually being completed?

Expert Solution

Step 1

Merger refers to the agreement of more than one company to form in a single company to run its operations. The merger has been adopted by the companies to increase their operation or protect them from bankruptcy.

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