Part B is required here.

Q2(a) [8 Marks] Dowling Brothers Limited (DBL) is a retailer of men's and women's fashion with outlets in Galway, Limerick, and Thurles. The business has been handed down through the Dowling family for generations. However, the business now faces its biggest struggle to survive due to competition from online retailers and supermarket chains diversifying into the clothing market. There are three Dowling brothers on the board of directors of DBL. One of the directors believes that in order to reduce risk and to secure the future of the business for the next generation, DBL must begin to diversify its operations as soon as possible. The other two directors agree but are concerned about the direction this may take the family business. DBL has approached another company, Wines Of The World Limited (WWL) with a view to negotiating a buyout. WWL is a wine importer, with a large warehouse premises in Galway and retail outlets in Galway, Ennis and Thurles. WWL has an online presence and has an effective computerised internal controls system. Whereas DBL is less advanced in its use of technology The directors of DBL and WWL have agreed a share price for WWL but have yet to agree the form of bid consideration. The board of DBL are keen for a 'share. for-share' exchange as consideration, whereas the board of WWI are anxious to be paid in cash for the shares of the company. Requirement: Explain the advantages only of a 'share-for-share' exchange and cash payment as forms of bid consideration for both DBL and WWL above. Q 2(b) [6 Marks] Briefly outline the operating and financial synergies that may accrue as a result of a merger or acquisition