CMN 4105 Lecture Notes - Lecture 7: Due Diligence, Market Power, Leveraged Buyout
12 Apr 2016
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Document Summary
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 firm"s bid. 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. Overcome entry barriers to new markets or regions.
