Provide five reasons why a firm would want to acquire another firm. Explain why most acquisitions...

Provide five reasons why a firm would want to acquire another firm. Explain why most acquisitions are unsuccessful.

Expert Solution

Firm will be wanting to acquire another firm because-

A. It can lead to increase in market share

B. It can lead to increase in the consumer base and expansion and growth of the consumer base

C. It can help in gaining the core competitiveness by acquiring the competitor

D. It will also help in attracting a premium valuation because the entity will be becoming large

E. It will lead to other Synergy benefits like better management of employees and sharing of Technical know how

Most acquisitions are successful because they are leading to acquiring of such firms which are not able to meet each other expectation due to different culture and different working ethics and they are not able to get in line with one business goal and they are not able to synchronise their business objectives so they are mostly successful in nature these are more like purchase rather than combination of two entitiess.

jeff jeffy answered 2 years ago

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