The downsides or limitations of mergers and acquisitions include all of the following except
A) It is a slow means to enter new markets and acquire skills and competences.
B) Difficulties exist in integrating the activities and resources of the acquired firm into ongoing operations.
C) There can be many cultural issues that can doom an otherwise promising acquisition.
D) Premiums that are frequently paid to acquire a business are large.

Question

Quizplus · Accepted Answer

There are several limitations of mergers and acquisitions, including that takeover premiums paid for acquisitions are typically very high, competing firms often can imitate any advantages or copy synergies that result from the merger or acquisition, manager egos sometimes get in the way of sound business decisions, and cultural issues may doom the intended benefits from merger and acquisition endeavors.

The Downsides or Limitations of Mergers and Acquisitions Include All