Question: Which factor determines the extent to which current shareholders can benefit from the synergies resulting from an acquisition? The uniqueness of synergies to the prospective

Which factor determines the extent to which current shareholders can benefit from the synergies resulting from an acquisition?
The uniqueness of synergies to the prospective buyer
The trading price of the stock
The willingness of the acquirer to buy the company
The cost reductions due to greater economies of scale
Incorrect! The correct answer is the extent to which the current shareholders are able to capture the value of the synergies is a function of how unique to the prospective buyer these are.

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