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Friday, August 27, 2010

Why a company wants to acquire another company?


There are a variety of reasons for an acquisition:
  • The buyer’s growth has stalled and wants to satisfy the need of growth expectations of the customers as a whole
  • The buyer may expect high synergies on acquisition
  • The target firm may have reached a stage, where its financial valuation have reached a very low value i. e. low Enterprise Value


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