An acquisition will not be profitable
A)In any circumstances
B)As long as you paid lower than the company's discounted future profits
C)Without a synergy that makes the company more valuable to you than to the current owner
D)None of the above

Question

​An acquisition will not be profitable
A)​In any circumstances
B)As long as you paid lower than the company's discounted future profits
C)Without a synergy that makes the company more valuable to you than to the current owner
D)​None of the above

Quizplus · Accepted Answer

An acquisition can only be profitable if there is a synergy that makes the company more valuable to the buyer than to the current owner. This can result in increased efficiency, cost savings, or increased revenue. Simply paying lower than the company's discounted future profits does not guarantee profitability, as there may be other factors at play that make the acquisition unprofitable. Therefore, option C is the only correct answer.

​An Acquisition Will Not Be Profitable

An Acquisition Will Not Be Profitable