Synergistic gains refers to
A)gains from hedging.
B)gains obtained when the value of the acquiring and target firms,combined,is greater than the stand-alone valuations of the individual firms.
C)gains arising if the combined companies can save on the costs of production,marketing,distribution,and R&D.
D)gains obtained when the value of the acquiring and target firms,combined,is greater than the stand-alone valuations of the individual firms.It also refers to gains arising if the combined companies can save on the costs of production,marketing,distribution,and R&D.

Question

Quizplus · Accepted Answer

Synergistic gains refer to the gains obtained when the value of the acquiring and target firms, combined, is greater than the stand-alone valuations of the individual firms. It also refers to gains arising if the combined companies can save on the costs of production, marketing, distribution, and R&D. Therefore, the best choice is D, as it encompasses both aspects of synergistic gains.

Synergistic Gains Refers to