Cost saving is less likely to be a reason for takeover activity in:
A)horizontal takeovers.
B)vertical takeovers.
C)conglomerate takeovers.
D)both horizontal and vertical takeovers.

Question

Quizplus · Accepted Answer

Conglomerate takeovers typically involve companies in unrelated industries, so cost savings through synergies is less likely to be a motivation for the takeover. Instead, the motivation may be to diversify the acquiring company's portfolio, expand its customer base, or gain access to new markets or technologies. Horizontal and vertical takeovers, on the other hand, often involve companies in the same or related industries and can result in cost savings through economies of scale or vertical integration.

Cost Saving Is Less Likely to Be a Reason for Takeover