The significance of the four economic classifications of mergers on the likelihood of governmental intervention. Introduction: A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

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Answer 1

Question

Chapter 21, Problem 1Q

a.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention.

Introduction:

A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

a.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the likelihood of governmental intervention is as follows:

The mergers that result in the government intervention from the four economic classifications of mergers are as follows:

Vertical mergers
Horizontal mergers

These types of mergers would result in the operating synergy.

b.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the possibilities for operating synergy.

b.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the possibilities for operating synergy is as follows:

The Conglomerate merger takes place when a dissimilar company combines together to form a new company. However, the congeneric merger occurs with same general industry. Both these mergers are not attacked by the government and even they provide less synergistic benefits.

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Students have asked these similar questions

Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate,and (4) congeneric. Explain the significance of these terms in merger analysis with regard to(a) the likelihood of governmental intervention and (b) possibilities for operating synergy.

“Reasons for merger that will result in wealth maximization are strategic benefits, market power, economics of scale, economies of vertical integration and taxation benefits”. Describe how any four out of the five factors mentioned may contribute to the success of a merger business exercise

What are horizontal, vertical, congeneric, andconglomerate mergers? Are the different typesof mergers equally likely to pass muster with theJustice Department?

Answer 2

Question

Chapter 21, Problem 1Q

a.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention.

Introduction:

A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

a.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the likelihood of governmental intervention is as follows:

The mergers that result in the government intervention from the four economic classifications of mergers are as follows:

Vertical mergers
Horizontal mergers

These types of mergers would result in the operating synergy.

b.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the possibilities for operating synergy.

b.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the possibilities for operating synergy is as follows:

The Conglomerate merger takes place when a dissimilar company combines together to form a new company. However, the congeneric merger occurs with same general industry. Both these mergers are not attacked by the government and even they provide less synergistic benefits.

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Answer 3

Question

Chapter 21, Problem 1Q

a.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention.

Introduction:

A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

a.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the likelihood of governmental intervention is as follows:

The mergers that result in the government intervention from the four economic classifications of mergers are as follows:

Vertical mergers
Horizontal mergers

These types of mergers would result in the operating synergy.

b.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the possibilities for operating synergy.

b.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the possibilities for operating synergy is as follows:

The Conglomerate merger takes place when a dissimilar company combines together to form a new company. However, the congeneric merger occurs with same general industry. Both these mergers are not attacked by the government and even they provide less synergistic benefits.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 21, Problem 1Q

a.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention.

Introduction:

A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

a.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the likelihood of governmental intervention is as follows:

The mergers that result in the government intervention from the four economic classifications of mergers are as follows:

Vertical mergers
Horizontal mergers

These types of mergers would result in the operating synergy.

b.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the possibilities for operating synergy.

b.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the possibilities for operating synergy is as follows:

The Conglomerate merger takes place when a dissimilar company combines together to form a new company. However, the congeneric merger occurs with same general industry. Both these mergers are not attacked by the government and even they provide less synergistic benefits.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 21, Problem 1Q

a.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention.

Introduction:

A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

a.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the likelihood of governmental intervention is as follows:

The mergers that result in the government intervention from the four economic classifications of mergers are as follows:

Vertical mergers
Horizontal mergers

These types of mergers would result in the operating synergy.

b.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the possibilities for operating synergy.

b.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the possibilities for operating synergy is as follows:

The Conglomerate merger takes place when a dissimilar company combines together to form a new company. However, the congeneric merger occurs with same general industry. Both these mergers are not attacked by the government and even they provide less synergistic benefits.

Answer 6

Chapter 21, Problem 1Q

a.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention.

Introduction:

A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

a.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the likelihood of governmental intervention is as follows:

The mergers that result in the government intervention from the four economic classifications of mergers are as follows:

Vertical mergers
Horizontal mergers

These types of mergers would result in the operating synergy.

Answer 7

Chapter 21, Problem 1Q

a.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention.

Introduction:

A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

Answer 8

a.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the likelihood of governmental intervention is as follows:

The mergers that result in the government intervention from the four economic classifications of mergers are as follows:

Vertical mergers
Horizontal mergers

These types of mergers would result in the operating synergy.

Answer 9

a.

Expert Solution

Answer 10

a.

Expert Solution

Answer 11

Expert Solution

Answer 12

b.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the possibilities for operating synergy.

b.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the possibilities for operating synergy is as follows:

The Conglomerate merger takes place when a dissimilar company combines together to form a new company. However, the congeneric merger occurs with same general industry. Both these mergers are not attacked by the government and even they provide less synergistic benefits.

Answer 13

b.

Summary Introduction

To discuss: The significance of the four economic classifications of mergers on the possibilities for operating synergy.

Answer 14

b.

Expert Solution

Explanation of Solution

The significance of the four economic classifications of mergers on the possibilities for operating synergy is as follows:

The Conglomerate merger takes place when a dissimilar company combines together to form a new company. However, the congeneric merger occurs with same general industry. Both these mergers are not attacked by the government and even they provide less synergistic benefits.

Answer 15

b.

Expert Solution

Answer 16

b.

Expert Solution

Answer 17

Expert Solution

Answer 18

Ch. 21 - Prob. 1Q Ch. 21 - Prob. 2Q Ch. 21 - Prob. 3Q Ch. 21 - In the spring of 1984, Disney Productions stock...Ch. 21 - Prob. 5Q Ch. 21 - VALUATION Visscher currently expects to pay a...Ch. 21 - MERGER VALUATION Hastings estimates that if it...Ch. 21 - MERGER BID On the basis of your answers to...Ch. 21 - Prob. 4P Ch. 21 - CAPITAL BUDGETING ANALYSIS The Stanton Stationery...

The significance of the four economic classifications of mergers on the likelihood of governmental intervention. Introduction: A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention. Introduction: A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.

Explanation of Solution

To discuss: The significance of the four economic classifications of mergers on the possibilities for operating synergy.

Explanation of Solution

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Chapter 21 Solutions

To discuss: The significance of the four economic classifications of mergers on the likelihood of governmental intervention.

Introduction:

A process or an agreement where two or more firms combines together to form one new company is termed as Mergers.