Which of the following statements is FALSE?
A) Synergy resulting from an acquisition generates gains in shareholder wealth beyond what they could achieve through diversification of their own portfolios.
B) Private synergy results when the combination of two firms yields competencies and capabilities that could not be achieved by combining with any other firm.
C) Although private synergy is easy to analyze, it is difficult to create.
D) Private synergy is more likely when the two firms in an acquisition have complementary assets.

Question

Quizplus · Accepted Answer

This statement is the only one that is false. Private synergy is not easy to analyze or to create, as it requires a deep understanding of the two firms involved and how their capabilities can be combined for mutual benefit. The other three statements are true.

Which of the Following Statements Is FALSE