Chapter 11: Methods of Development Flashcards
(2 cards)
1
Q
what are porters test for a successful acquisition
A
The better off test - will the company recieve the same benefit by buying shares in that market or will acquiring the business give extra benefits
the cost of enter test - although the market is attractive can the business enter the market at a lower price, what are the disadvantages of waiting
2
Q
what are synergies
A
benefits available to 2 or more businesses after merging which are not available independently
