Takeovers And Mergers

Question 1

Benefit of takeover 1

Answer 1

Overcome barriers to entry
Increase sales
Reduce competition + access to distribution channels

Question 2

Benefit of takeovers/mergers 2

Answer 2

Synergy 
Greater economies of scale 
Lower unit costs
Lower lrice or higher profit margins
Competitive advantage

Question 3

Drawback of takeover 1

Answer 3

Clash of corporate cultures(define)

Lead to DEOS (define)

Question 4

Drawback of takeover 2

Answer 4

Synergies are a myth

or
Takeovers can cause financial drain

Question 5

define takeover or mergers

Answer 5

Example of inorganic growth when a business gains control of another