If there is any hope that mergers and acquisitions will be a source of superior performance for bidding firms, it must be because of some sort of strategic relatedness between bidding and target firms.

Question

Quizplus · Accepted Answer

The statement is true. Mergers and acquisitions can only lead to superior performance for bidding firms if there is some sort of strategic relatedness between the bidding and target firms. Without this relatedness, the merger or acquisition is unlikely to generate any real benefits or synergies. Therefore, it is essential for firms to carefully consider strategic fit before initiating any merger or acquisition deal.

If There Is Any Hope That Mergers and Acquisitions Will