Mergers and Acquisition Strategies

Question 1

A strategy through which two firms agree to integrate their operations on a relatively coequal basis

Answer 1

merger

Question 2

A strategy though which one firm buys a controlling, or 100 percent, interest in another firm with the intent of making the acquired firm a subsidiary business within its portfolio

Answer 2

acquisition

Question 3

A special type of acquisition where the target firm does not solicit the acquiring firm’s bid; thus, takeovers are unfriendly acquisitions

Answer 3

takeover

Question 4

A strategy through which a firm changes its set of businesses or its financial structure

Answer 4

restructuring