The big issue an acquisition-minded firm must consider is whether strategically:
A) to acquire the firm at a price that is prohibitive-in other words,a price that cannot recapture the investment.
B) to require the acquired firm's resources and management capability to sustain the on-going struggling operation.
C) to pay a premium price for a successful local company or to buy a struggling firm at a discount price.
D) to pay a price that builds in all the synergistic advantages to the acquired firm.
E) to pay a very high premium price that sends a signal to the market that the new firm has arrived.
Correct Answer:
Verified
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