The acquisition of strategically unrelated targets will generate substantial economic profits for both the bidding and the target firms.

Question

Quizplus · Accepted Answer

The acquisition of strategically unrelated targets may not generate substantial economic profits for both the bidding and the target firms as it may not create any synergies and may not fit into the overall strategy of the acquiring firm. In fact, it may lead to diversification discount and result in decreased shareholder value.

The Acquisition of Strategically Unrelated Targets Will Generate Substantial Economic