Research suggests that horizontal acquisitions result in higher performance when the firms have similar strategies, assets, and capabilities.

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Research has shown that horizontal acquisitions are more likely to result in higher performance when the companies involved have similar strategies, assets, and capabilities. This is because they can more easily combine their resources and expertise to create synergies, such as cost savings, increased market power, and enhanced innovation. When the firms are too dissimilar, it can be more difficult to integrate their operations and realize these benefits. Therefore, it is important to carefully consider strategic fit when pursuing a horizontal acquisition.

Research Suggests That Horizontal Acquisitions Result in Higher Performance When