Which of the following statements is true in the context of mergers and acquisitions?
A)Unrelated acquisitions are easier to implement than unrelated ones.
B)Mergers and acquisitions often do not require strategic analysis.
C)Corporate managers' capabilities ultimately decide the success of mergers and acquisitions.
D)Mergers and acquisitions make it easier to implement output controls and business processes.
E)Mergers and acquisitions often do not require new lines of authority to be established.

Question

Quizplus · Accepted Answer

The success of mergers and acquisitions usually depends on the capabilities of corporate managers to identify and implement synergies between the two firms. Strategic analysis is often critical in identifying the appropriate targets and developing a successful integration plan. Unrelated acquisitions may be more challenging to implement as the two firms may have different business models and cultures, requiring significant adjustments to make them work together. Mergers and acquisitions may also require new lines of authority to be established and can be complicated by differing processes and output controls.

Which of the Following Statements Is True in the Context