CORPORATE FINANCE--CONNECT ACCESS CARD
12th Edition
ISBN: 9781264331062
Author: Ross
Publisher: MCG CUSTOM
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Chapter 29, Problem 3CQ
Summary Introduction
To explain: Reasons for diversification not being good for mergers.
Diversification:
Diversification is an action through which a company acquires the controlling interest of another company in order to get the benefit of acquiring another company by expanding its business. It is one of the risk management techniques. It is a strategy to enter into the new market by creating new products or by expanding the product line.
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Chapter 29 Solutions
CORPORATE FINANCE--CONNECT ACCESS CARD
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- Difference between Internal reconstruction and External reconstruction (Merger and acquisition)?arrow_forwardwhich of the following are potential areas for cost reduction with a merger or acquisition? (Check all that apply) A) economies of sale B) economies of vertical integration C) complementary resources D) reduction in EPS E) higher transaction costsarrow_forwardwhy does related diversification strategy and unrelated diversification strategy often failarrow_forward
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