What is difference between merger and acquisition? - ProProfs Discuss
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What is difference between merger and acquisition?

Asked by Mehtajimmit, Last updated: Apr 05, 2024

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Ken Wilson

Ken Wilson

Want to learn new things and share my knowledge

Ken Wilson
Ken Wilson, Marketing Analyst, MBA, Miami

Answered Feb 28, 2019

The answer to this is letter D. The economies of scale should steer clear from duplicating each other especially if they can thrive on their own. Why duplicate when you can produce something that people will be able to appreciate?

There are always results that are stating that when you make an effort to do away with duplication, this is the time when you can make the best gains. Take note that companies would always need to make an effort in order to establish the reputation that they want to become appreciated by the different consumers.

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mehtajimmit

mehtajimmit

mehtajimmit
Mehtajimmit

Answered May 07, 2018

Economies of scale from doing away with duplication of function between the two firms.

Empirical evidence and typical business experience of M&A activity suggests that doing away with duplication is often the most important gain.*##**##*
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