The effects of synergy resulting from combining the acquirer and target firms do not affect the acquirer's ability to finance the transaction.

Question

Quizplus · Accepted Answer

The effects of synergy can affect the acquirer's ability to finance the transaction, as synergies can result in cost savings or increased revenues, which could improve the financial position of the combined firm and make it easier to secure financing.

The Effects of Synergy Resulting from Combining the Acquirer and Target