The Synergies of a Merger Add So Much Value to the Combined

question 42

True/False

The synergies of a merger add so much value to the combined firm that, upon announcement of a merger, the stock prices of both the target and the acquirer increase substantially.

---

Definitions:

Direct Strategy

Direct strategy refers to a communication approach where the main point or request is presented at the beginning, followed by supporting information.

Layoff Notice

A formal declaration provided by an employer to an employee indicating the termination of their employment due to economic reasons.

Insurance Claim

A formal request made by an individual or entity to an insurance company for coverage or compensation for a covered loss or policy event.

Buffer

A part of a message designed to reduce shock or negative reactions by easing into the main point or bad news.