Magma, Inc., acquired Vulcan, Inc., 3 years ago. Effective integration of the two companies' culture was never achieved, and the two firms' assets were not complementary. It is very likely that Magma will:
A) go public through an IPO.
B) review the due diligence information collected before the acquisition.
C) restructure.
D) review its tactical-level strategies.

Question

Quizplus · Accepted Answer

The lack of effective integration and the fact that the two companies' assets were not complementary suggest that a restructuring is necessary to address these issues and improve overall performance. Going public through an IPO or reviewing due diligence information would unlikely solve these problems, and reviewing tactical-level strategies may be necessary after the restructuring is complete.