There are few true mergers because
A) few firms have complementary resources.
B) integration problems are more severe than in outright acquisitions.
C) one firm usually dominates in terms of market share or firm size.
D) of managerial resistance. True mergers result in significant managerial-level layoffs.

Question

Quizplus · Accepted Answer

One firm usually dominates in terms of market share or firm size. This means that true mergers are rare because it is unlikely that two firms of equal size and market share will come together. In most cases, one firm will be significantly larger and dominant, making it more of an acquisition than a true merger.

There Are Few True Mergers Because