Two managerial motivations for mergers and acquisitions which may not be a good thing are:
A) strategic realignment and tax benefits.
B) Efficiency increases and financing synergies.
C) complementary strengths and geographic synergies.
D) increased company size and reduced company risk through diversification.

Question

Quizplus · Accepted Answer

Increased company size and reduced company risk through diversification can sometimes be driven by managerial self-interest rather than shareholder value maximization, potentially leading to decisions that are not in the best interest of the company or its shareholders.

Two Managerial Motivations for Mergers and Acquisitions Which May Not