more. 1. Rationale for mergers Aa Aa Academics and practitioners have identified several major reasons that drive firms' merger, acquisition, and breakup decisions. Correctly identify the term or motive for the merger and acquisition with its description. Term or Motive for Merger Diversification Managers' personal incentives Tax considerations Purchase assets below replacement cost Description Acquire You Corp. bought AcquireMe Inc., which has assets with a value considerably lower than its market value. If Company A merged with Company B, they would get better opportunities through collaborative marketing, production, and distribution in different markets. During the 1980s, Hallmark acquired Binney & Smith (manufacturers of Crayola Crayons and Magic Markers) and Univision (a Spanish-language TV network) to expand its line of products in different segments and protect against the seasonal nature of its core greeting card business. A merger is driven by the managers' desire to increase the size of the firm rather than by strict economic analysis. Aa Aa 1. Rationale for mergers Academics and practitioners have identified several major reasons that drive firms merger, acquisition, and breakup decisions. Correctly identify the term or motive for the merger and acquisition with its description. Term or Motive for Merger Description Acquire You Corp. bought AcquireMe Inc., which has assets with a value considerably lower than its market value. If Company A merged with Company B, they would get better opportunities through collaborative marketing, production, and distribution in different markets. During the 1980s, Hallmark acquired Binney & Smith (manufacturers of Crayola Crayons and Magic Markers) and Univision (a Spanish-language TV network) to expand its line of products in different segments and protect against the seasonal nature of its core greeting card business. A merger is driven by the managers' desire to increase the size of the firm rather than by strict economic analysis. Tax considerations Diversification Synergy Managers' personal incentives Aa Aa 1. Rationale for mergers Academics and practitioners have identified several major reasons that drive firms' merger, acquisition, and breakup decisions. Correctly identify the term or motive for the merger and acquisition with its description Term or Motive for Merger Description Acquire You Corp. bought AcquireMe Inc., which has assets with a value considerably lower than its market value. If Company A merged with Company B, they would get better opportunities through collaborative marketing, production, and distribution in different markets. During the 1980s, Hallmark acquired Binney & Smith (manufacturers of Crayola Crayons and Magic Markers) and Univision (a Spanish-language TV network) to expand its line of products in different segments and protect against the seasonal nature of its core greeting card business. A merger is driven by the managers' desire to increase the size of the firm rather than by strict economic analysis. Tax considerations Managers' personal Incentives Breakup value Diversification 1. Rationale for mergers Aa Aa Academics and practitioners have identified several major reasons that drive firms' merger, acquisition, and breakup decisions. Correctly identify the term or motive for the merger and acquisition with its description. Term or Motive for Merger Description AcquireYou Corp. bought AcquireMe Inc., which has assets with a value considerably lower than its market value. If Company A merged with Company B, they would get better opportunities through collaborative marketing, production, and distribution in different markets. During the 1980s, Hallmark acquired Binney & Smith (manufacturers of Crayola Crayons and Magic Markers) and Univision (a Spanish-language TV network) to expand its line of products in different segments and protect against the seasonal nature of its core greeting card business. A merger is driven by the managers' desire to increase the size of the firm rather than by strict economic analysis. Managers' personal incentives Diversification Tax considerations Synergy
