The big dilemma an acquisition-minded firm faces is whether to
A)focus on building brand awareness or establishing supplier relationships.
B)pay a premium price for a successful company or buy a struggling company at a bargain price.
C)strive for scale economies or to acquire technical know-how to customize production.
D)focus on building brand awareness or striving for scale economies.
E)focus on acquiring technical know-how or outsourcing production.

Question

Quizplus · Accepted Answer

The big dilemma for an acquisition-minded firm is whether to pay a premium price for a successful company or buy a struggling company at a bargain price. Both options have their pros and cons, and the choice depends on the strategic goals of the acquiring firm. Paying a premium price for a successful company may provide immediate benefits in terms of market share, brand reputation, and customer base, but it also entails higher risks and investment. On the other hand, buying a struggling company at a bargain price may seem like a safer bet, but it also requires intensive restructuring efforts to turn the company around and make it profitable. Ultimately, the decision depends on the acquiring firm's capabilities, resources, and growth objectives.

The Big Dilemma an Acquisition-Minded Firm Faces Is Whether to