Typically, reasons for undertaking mergers are
A) only financial.
B) in conflict with wealth maximization.
C) strategic or financial.
D) only strategic.

Question

Quizplus · Accepted Answer

Mergers can be driven by both strategic and financial reasons. Strategic reasons may include gaining access to new markets, accessing new technology or skills, or acquiring key talent. Financial reasons may include achieving economies of scale, reducing costs, or increasing market share. Ultimately, the goal of a merger should be to create value for shareholders, which aligns with wealth maximization.

Typically, Reasons for Undertaking Mergers Are