All of the following are potential challenges or downsides to mergers except:
A) anti-trust laws
B) dilution
C) firm valuation
D) synergies

Question

Quizplus · Accepted Answer

Synergies are not a potential challenge or downside to mergers, but rather a potential benefit. Synergies refer to the efficiencies or cost savings that result from combining two companies. Possible challenges or downsides to mergers include anti-trust laws, which limit the concentration of power in particular industries, dilution of ownership and control, and difficulties in accurately valuing firms.

All of the Following Are Potential Challenges or Downsides to Mergers