Mergers and acquisitions are capital budgeting techniques. This technique is a managerial expansion decision to increase assets drawing a cash benefit. Research a most recent merger or acquisition and discuss the firm (merger – stable firm / acquisition – purchasing firm) expected cash benefit. Pretend you are the owner; would you make the same decision? Why or Why Not?

Reading:

“What you need to know about mergers & acquisitions: 12 Key considerations when Selling your company” by Richard Harroch