Synergistic gains refer to:
A) gains from hedging.
B) gains obtained when the value of the acquiring and target firms, combined together, is greater than the stand-alone valuations of the individual firms.
C) gains arising if the companies can save on the costs of production, marketing, distribution, and R&D standalone.
D) gains obtained when the companies face together into a competition for a particular product market.

Question

Quizplus · Accepted Answer

Synergistic gains refer to the gains obtained when the value of the acquiring and target firms, combined together, is greater than the stand-alone valuations of the individual firms. This can occur due to various synergies, such as cost-saving synergies, economies of scale, increased market power, and cross-selling opportunities.

Synergistic Gains Refer To