- 15 Marks
FM – Nov 2016 – L3 – SC – Q7 – Mergers and Acquisitions
Advise on the benefits, drawbacks, alternatives, and target selection criteria for expansion through mergers or acquisitions.
Question
One of the means by which companies expand is through mergers and acquisitions. However, there are other means of expansion aside from these methods.
Inkline Plc. is one of your client companies intending to expand its business by means of merger or acquisition. Your firm of management consultants has been asked to advise the management of the company on what steps to take while considering the merger and acquisition methods, and whether it should go ahead with the expansion programme or otherwise.
Required:
a. (i) FOUR benefits derivable from its proposed means of expansion. (4 Marks)
(ii) THREE probable demerits of employing its proposed method of expansion. (3 Marks)
b. TWO alternatives to merger and acquisition in your report. (2 Marks)
c. Where the company decides to go ahead with either of these methods, indicate THREE criteria the company may consider in choosing its target company. (6 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Acquisitions, Benefits, Business Strategy, Drawbacks, expansion, Mergers, Target Selection
- Level: Level 3
- Topic: Mergers and acquisitions
- Series: NOV 2016