Which of the following might prevent an acquisition?
A)Strong synergies
B)Anti-trust
C)EBITDA
D)Economies of scale
E)Decreased marginal cost

Question

Quizplus · Accepted Answer

Anti-trust could prevent an acquisition. The government has the ability to scuttle an acquisition if it gives too much market power to a certain firm.
Key Takeaway: You must consider anti-trust before making an acquisition recommendation. It might be a great strategy for Microsoft to acquire Apple, but there is no way in a billion years the US government would allow it to happen.

Which of the Following Might Prevent an Acquisition