The most common sources of value include potential cost savings resulting from all of the following except for which of the following:
A) Shared overhead
B) Elimination of duplicate facilities
C) Better utilization of existing facilities (i.e., economies of scale)
D) Warranty claims
E) Productivity improvements by applying the best practices of both firms

Question

Quizplus · Accepted Answer

Warranty claims are not a source of potential cost savings but rather represent a potential cost to the acquiring company. The other options listed are common sources of value in a merger or acquisition.

The Most Common Sources of Value Include Potential Cost Savings