Tax benefits, such as tax credits and net operating loss carry-forwards of the target firm, are often considered the primary reason for the acquisition of that firm.

Question

Quizplus · Accepted Answer

While tax benefits, such as tax credits and net operating loss carry-forwards, can be attractive reasons for an acquisition, they are often not the primary reason. Acquisitions are typically driven by strategic goals such as expanding market share, acquiring new technologies, entering new markets, or achieving economies of scale.

Tax Benefits, Such as Tax Credits and Net Operating Loss