A requirement for acquiring a related firm to generate value is
A) it be profitable
B) you be profitable
C) you will alter operations because of the acquisition
D) all synergies between the firms were exploited before the acquisition

Question

Quizplus · Accepted Answer

In order to acquire a related firm and generate value, it is important to alter operations because of the acquisition. This could involve combining resources, cutting costs, or leveraging the strengths of both companies to improve overall performance. Simply acquiring a profitable firm or ensuring your own profitability may not necessarily lead to increased value. It is also important to consider whether all possible synergies between the firms have been exploited before the acquisition, but this is not necessarily a requirement for generating value.

A Requirement for Acquiring a Related Firm to Generate Value