B r i e f l y   d e s c r i b e   e a c h   o f   t  h e   f o l l o w i  n g   m o t i v e s   f  o r   m e r g i n g :   ( a )   g r o w t  h   o r   d i v e r s i f i c a t i o n,   ( b )   s y n e r g y ,   ( c )   f u n d   r a i s i n g

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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  1. B r i e f l y   d e s c r i b e   e a c h   o f   t  h e   f o l l o w i  n g   m o t i v e s   f  o r   m e r g i n g :   ( a )   g r o w t  h   o r   d i v e r s i f i c a t i o n,   ( b )   s y n e r g y ,   ( c )   f u n d   r a i s i n g ,   ( d )   i n c r e a s e d   m a n a g e r i a l   s k i l l  o r   t e c h n o l o g y,   ( e )   t a x   c o n s i d e r a t i o n s ,   ( f )  i n c r e a s e d   o w n e r s h i p   l i q u i d i t y ,   a n d   ( g )   d e f e n s e   a g a i n s t   t a k e o v e r . 

  2.  W h a t   i s   a   l e v e r a g e d   b u y o u t   ( L B O ) ?   W h a t   a r e   t h e    t h r e e   k e y   a t t r i b u t e s    of   a n a t t r a c t i v e   c a n d i d a t e   f o r   a c q u  i s i t i o n   v i a   a  n   L B O ? 

  3. W h a t   i s   a n   o p e r a  t i n g   u ni  t?    Wh a t   i s   a    d iv e s t i t u r e ?   W h a t   a r e   f o u r   c o m m  on   m e t h o d s   u s e d   b y   f i r m s   t o   d i v e s t   t h e m se l v e s   o f  o p e r a t i  n g  u n i t s ?  W h a t   i s   b r e a k u p   v a l u e ? 
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