A(n) ________ is undertaken with the goal of restructuring the acquired company in order to improve its cash flow and unlock its hidden value.
A) operating merger
B) strategic merger
C) financial merger
D) hostile takeover

Question

Quizplus · Accepted Answer

A financial merger is specifically undertaken with the goal of restructuring the acquired company in order to improve its cash flow and unlock its hidden value. This differs from operating mergers, which primarily aim to create synergies and efficiencies through combining operations, and from strategic mergers, which are often driven by the desire to expand market share or diversify into new product areas. A hostile takeover refers to an acquisition in which the acquiring company does not have the support or cooperation of the target company's management or board of directors, and instead tries to obtain control of the company through direct purchase of shares or other means.

A(n) ________ Is Undertaken with the Goal of Restructuring the Acquired