For a Merger to Add Value to Both Sets of Shareholders

question 16

Multiple Choice

For a merger to add value to both sets of shareholders realistic synergies must be identified and achieved. This implies

• A)The buyer must have intimate knowledge of the company being bought
• B)The company being bought must have detailed knowledge about the acquirer
• C)Both A and B are true
• D)Neither A nor B really matters, as everything depends on postmerger integration in the end