A key reason for acquisitions is synergy.Synergy includes all the following except:

Question

Quizplus · Accepted Answer

Decreased cash flows is not a part of synergy, which is the combination of two companies' strengths and resources to achieve greater results together than they could separately. Synergy is often achieved through revenue enhancements, cost reductions, increased efficiency, and increased debt capacity. Decreased cash flows would be a negative outcome and not a part of the synergy benefits.

A Key Reason for Acquisitions Is Synergy