Whether or not cross-border acquisitions produce synergistic gains and how such gains are divided between acquiring and target firms
A)are important issues from the perspective of shareholder welfare.
B)are important issues from the perspective of public policy.
C)are important issues from the perspective of stakeholders in the target firms.
D)all of the options

Question

Quizplus · Accepted Answer

Cross-border acquisitions can have significant impacts on shareholder welfare, public policy, and stakeholders in the target firms. Therefore, all options are correct. Shareholders are interested in whether the acquisition will increase their return on investment. Public policy concerns may include issues related to national security, competition, and foreign investment regulations. Stakeholders in the target firm, such as employees and suppliers, may be affected by changes in ownership and management practices. Understanding the potential synergies and how they will be shared between the acquiring and target firms is important in all of these contexts.

Whether or Not Cross-Border Acquisitions Produce Synergistic Gains and How