Private synergy:
A) occurs in most related acquisitions and allows firms to see increased returns.
B) is frequently achieved in conglomerates.
C) is not easy to understand and imitate.
D) is easily assessed by managers as they evaluate a potential acquisition.

Question

Quizplus · Accepted Answer

Private synergy is a type of synergy that is difficult to understand and imitate. It refers to the unique combination of resources, capabilities, and knowledge that two firms can bring together through a merger or acquisition, which results in greater value creation that is not easily replicated by competitors. Therefore, it is not easily assessed by managers as they evaluate a potential acquisition.

Private Synergy