Typically, reasons for undertaking mergers are
A) only strategic.
B) in conflict with wealth maximization.
C) strategic or financial.
D) only financial.

Question

Quizplus · Accepted Answer

Mergers can be undertaken for both strategic and financial reasons. Strategic reasons may include achieving economies of scale, expanding product lines, and accessing new markets. Financial reasons may include diversifying risks, improving financing options, and increasing shareholder value through synergies. Both strategic and financial reasons should ultimately contribute to wealth maximization for the merged company.

Typically, Reasons for Undertaking Mergers Are