Mergers are often justified by synergies, making the new, combined business more valuable than the individual parts.

Question:

Mergers are often justified by synergies, making the new, combined business more valuable than the individual parts. What are synergies? Briefly describe a potential revenue-enhancing synergy and two potential cost-saving synergies.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Smith and Roberson Business Law

ISBN: 978-0538473637

15th Edition

Authors: Richard A. Mann, Barry S. Roberts

See More Books

Question Posted: Sep 19, 2013 02:59 AM

See More Questions

What potential cost saving advantages might firms experience by using outsourcing?
New manufacturing technologies are often viewed as labor saving in nature. Using a production-possibilities frontier with manufactured goods on one axis and (laborintensive) services on the other...
Describe the three dimensions of revenue synergies that may be achieved in a merger.
Given an array, Arr[] of integer numbers have size N. The task is to find out single or consecutive numbers from Arr[] with 0 sum. When found, print "1" otherwise "0". Example-1: Input: 4 (6,-2,3,-1)...
If A = 1.427, find the relative error if A is truncated to 1.42 and if it is rounded to 1.43.
What will the output be of the code above? Out 4: Choose... Out 6: Choose...
Derive formula (12.6) by converting a cash flow of a bond to that of the fixed portion of the swap. Formula 12.6 X V=MSo IB(M,C) - 100d (0,M)]}N, (12.6)
Yeager Company pays John Kerr a salary as an employee and also fees for work he does as an independent contractor. Does this violate IRS rules?
What is the CAPM? RsRf+Bs (Rm - Rf) WACC = V(levered) V(unlevered) + TCB Rs R0+ (BSL) (R0 - RB) ORS RO+ (B/SL) (RB - R0)
PortaCom has developed a design for a high-quality portable printer. The two key components of manufacturing cost are direct labor and parts. During a testing period, the company has developed...
Explain what holding companies are. Then identify, with explanations, some advantages and some disadvantages of holding companies.
This is a discussion question for my Principles of Finance course Investment banking involves both 'underwriting' and, 'mergers and acquisitions'...'what' does each of these terms mean...And how...
An r of ____ or ____ indicates a perfect linear relationship.
Use a spreadsheet model to evaluate the project analyzed in Problem 13-8. Problem 13-8 Enterprises is considering buying a vacant lot for an after-tax cost of $1.4 million. If the property is...
Situational Software Co. (SSC) is trying to establish its optimal capital structure. Its current capital structure consists of 25% debt and 75% equity; however, the CEO believes that the firm should...
Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $20 million in invested capital, has $4 million of EBIT, and is in the 25%...
Patek Philippe & Co. is attempting to select one of three mutually exclusive projects for the redesign of its classic watches: Nautilius, Grand Complications, and Calatrava. Although all the projects...
Refer to Problem 17-1 and assume that the company had $3 million in assets at the end of 2021. However, now assume that the company pays no dividends. Under these assumptions, what additional funds...
How are coenzymes related to vitamins?
a) Show that (a, b) := {{a}, {b}} does not satisfy the ordered pair axiom. b) Determine whether each of the following statements is true or false. (Give a reason in each case): (i) {a, b} C (a, b)....
Consider a binary mixture of species 1 and 2 that obeys the RedlichKwong equation of state with van der Waals mixing rules. Show that the fugacity coeffi cient for species 1 is given by the Species 1...
Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the accounting for dilutive securities, stock-based compensation, and earnings per share.
Norman Co., a fast-growing golf equipment company, uses GAAP. It is considering the issuance of convertible bonds. The bonds mature in 10 years, have a face value of $400,000, and pay interest...
Briefly discuss the convergence efforts that are under way by the IASB and FASB in the area of dilutive securities and earnings per share.
A retirement home in Florida costs $ 2 0 0 , 0 0 0 today. Housing prices in Florida are increasing at a rate of 4 % per year. Joe wants to buy the home in 8 years when he retires. Joe has $ 2 5 , 0 0...
1. (55 points) Answer the following questions about the steady state system shown below. (Don't worry about starting from 1st Law - use common engineering assumptions.) a) Is it appropriate to use...
Describe at least three ways that Guidance Software responds to and helps to manage changes in our technology - driven world? Describe what forecasting involves and list three limitations to...

Mergers are often justified by synergies, making the new, combined business more valuable than the individual parts.

Question:

Step by Step Answer:

Definition Synergy is defined as coming together of two different individuals corporate bodies or th...View the full answer

Smith and Roberson Business Law

Students also viewed these Accounting questions