For a Merger to Add Value to Both Sets of Shareholders

Multiple Choice

For a merger to add value to both sets of shareholders realistic synergies must be identified and achieved. This implies

A) The buyer must have intimate knowledge of the company being bought
B) The company being bought must have detailed knowledge about the acquirer
C) Both A and B are true
D) Neither A nor B really matters, as everything depends on postmerger integration in the end