Research has shown that ____,the greater is the probability that an acquisition will be successful.
A) the more related the acquired and acquiring firms are
B) the more diverse the resulting portfolio of competencies
C) the more disparate the corporate cultures
D) the more concentrated management attention is given to making acquisitions

Question

Quizplus · Accepted Answer

Research has consistently shown that the more related the acquired and acquiring firms are, the greater is the probability that an acquisition will be successful. This is because relatedness facilitates the integration of operations, resources, and strategies, resulting in enhanced synergy and value creation. In contrast, when the acquired and acquiring firms are dissimilar, the integration process can be more challenging and unpredictable, and there may be greater cultural clashes and stakeholder resistance.

Research Has Shown That ____,The Greater Is the Probability That