To be economically valuable, links between bidding and target firms must meet the same criteria as diversification strategies.

Question

Quizplus · Accepted Answer

Both bidding and diversification strategies are undertaken to enhance a firm's economic value. The links between bidding and target firms must meet the same criteria as diversification strategies, i.e., they must create value by improving the firm's core operations, providing synergies, enhancing competitive advantages, and improving the firm's overall performance.

To Be Economically Valuable, Links Between Bidding and Target Firms