In: Finance
Which one is true about synergies?
1. They are variable with the economy of the market at time of merger
2. The NPV of a merger cannot be positive without them
3. Horizontal mergers have the greatest synergy
4. Vertical mergers have the greatest synergy
5. Conglomerate mergers have the greatest synergy
Only 1st Option is True.
Synergies are variable with the economy of the market.
Statements 2,3,4 & 5 are False.
Therefore, answer is option 1