Lizzie is the CEO of a large corporation that offers accounting services to several companies. She has tried to acquire her closest rival, but her rival's management is opposed to the idea. In order to gain a competitive edge, Lizzie starts a campaign to persuade her rival company's shareholders to vote out its existing management in the hopes of replacing it with a management team more sympathetic to the goals of the acquiring company. Which method of acquiring a company is Lizzie using?

Question

Quizplus · Accepted Answer

Lizzie is using a proxy fight, which involves persuading the shareholders of a target company to vote in favor of a change in management that is more favorable to the acquiring company. Conglomeration refers to the acquisition of a company in a completely different industry, while a tender offer involves making a direct offer to the shareholders of a target company to purchase their shares. Synergistic value refers to the potential benefits of combining two companies, such as cost savings and increased efficiency. None of these methods fully describe the approach that Lizzie is taking.

Lizzie Is the CEO of a Large Corporation That Offers