Foundations Of Financial Management
Foundations Of Financial Management
17th Edition
ISBN: 9781260013917
Author: BLOCK, Stanley B., HIRT, Geoffrey A., Danielsen, Bartley R.
Publisher: Mcgraw-hill Education,
Question
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Chapter 20, Problem 1DQ
Summary Introduction

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.

Expert Solution & Answer
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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.

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