To name: The three industries in which mergers are prominent.
Introduction:
Merger:
An agreement between two already existing companies that combines them to form one single company is termed as a merger. This is done for the expansion of business, its share in the market and value of shareholders.
Answer to Problem 1DQ
The three industries in which mergers are prominent are –
Telecommunications
Pharmaceuticals and Health care
Public Utilities
Explanation of Solution
Mergers are common in many industries such as, computer, technology, telecommunications, public utilities, medicines, healthcare and energy. It helps expand businesses and competition in the markets.
In telecommunications industry, the growth is so rapid that a lot of funds are required for the growth of the business. Mergers help companies to acquire more funds and procure and use resources mutually.
In healthcare and pharmaceuticals industries, many firms of small and medium size merge to meet the competition in the markets and industry.
In retail sector and public utility industries, mergers and acquisitions seem attractive for capturing and increasing market share.
Want to see more full solutions like this?
Chapter 20 Solutions
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
- Describe the following terms: 1. A merger 2. An acquisitionarrow_forwardExplain 2 reasons of mergers to happen.arrow_forwardH4. you are told that the common integration complexities that arise in a merger and acquisition include the folloqing: I computer systems ii retention agreements iii human resource policies iv performance measurement v acquisition price which of these are valid integration complexities a. all of the aboce b. all except v c. all except II and V d. all except II e. all except III and IVarrow_forward
- 1 A i). What is leasing? ii). Discuss five important benefits of leasing. iii). Discuss five important rationales for mergers in recent times.arrow_forwardWhat major “merger waves” have occurred in the United States?arrow_forwardExamine what the empirical evidence say about who actually gains in a merger combinations.arrow_forward
- Intermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage LearningEBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT