Managers of bidding firms continue to engage in merger or acquisition strategies even though they usually do not generate profits for bidding firms in order to

Question

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Managers of bidding firms engage in merger or acquisition strategies to ensure survival because failing to grow or remain competitive can lead to financial distress and even bankruptcy. While mergers and acquisitions do not always generate immediate profits for bidding firms, they can provide long-term growth opportunities and increased market power, which can be crucial for survival and success in competitive industries.

Managers of Bidding Firms Continue to Engage in Merger or Acquisition