'Takeovers are value enhancing only because of synergistic gains'.Which of the following answers is most accurate regarding the aforementioned statement?
A)True.
B)False,value won't be affected by takeovers.
C)False,takeovers may also be value decreasing.
D)False,takeovers may be value enhancing for other reasons (e.g.replacing inefficient management).

Question

Quizplus · Accepted Answer

Takeovers can enhance value not only through synergistic gains but also by other means such as replacing inefficient management, gaining access to new markets or technologies, achieving economies of scale, and more. Therefore, the statement is too narrow in its assertion that value enhancement comes solely from synergistic gains.

'Takeovers Are Value Enhancing Only Because of Synergistic Gains