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) Private synergy is easy for competitors to understand and imitate.
D) Private synergy is more likely when the two firms in an acquisition have complementary assets.

Question

Quizplus · Accepted Answer

Private synergy is difficult for competitors to understand and imitate because it is specific and unique to the two firms involved in the acquisition. Therefore, statement C is false because it suggests the opposite.

Which of the Following Statements Is FALSE