A strategic merger is a merger transaction undertaken with the goal of restructuring the acquired company in order to improve its cash flow and unlock its hidden value.

Question

Quizplus · Accepted Answer

A strategic merger is primarily aimed at achieving long-term strategic goals, such as entering new markets, acquiring new technologies, or achieving economies of scale, rather than solely focusing on restructuring for improved cash flow and unlocking hidden value.

A Strategic Merger Is a Merger Transaction Undertaken with the Goal