COMM 315 Chapter Notes - Chapter 7: Market Power, Due Diligence, Human Capital
1 May 2015
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Acquisition strategies are increasingly popular due to. Deregulation of many industries in different economies. Resulting increase in number and size of domestic and cross-border acquisitions, especially from emerging economies. A strategy through which two firms agree to integrate their operations on a relatively coequal basis. Few true mergers actually occur, because one party is usually dominant in regard to market share or firm size. A strategy through 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. A special type of an acquisition strategy wherein the target firm does not solicit the acquiring. Increase market power: exists when a firm is able to sell its goods or services above competitive levels or when the costs of its primary or support activities are lower than those of its competitors.
