Financial considerations, such as an acquirer believing the target is undervalued, a booming stock market or falling interest rates, frequently drive surges in the number of acquisitions.

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Financial considerations are indeed one of the major drivers behind surges in the number of acquisitions. Companies may find it financially beneficial to acquire another company that is undervalued or take advantage of a booming stock market or falling interest rates to pursue acquisitions.

Financial Considerations, Such as an Acquirer Believing the Target Is