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Asked by zachery spence on Jul 19, 2024

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In financial mergers, the acquiring company may not have any expertise in the target company's business.

Financial Mergers

The combining of two or more financial entities or assets into one, with the aim of creating efficiencies or achieving financial goals.

Acquiring Company

A company that purchases most or all of another company's shares to gain control of that company.

Target Company's Business

Refers to the primary operations, sector, and market activities of a company that is the subject of a takeover or acquisition.

  • Assess the motivations for financial mergers and acquisitions.
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Gavriela PerrymanJul 23, 2024
Final Answer :
True
Explanation :
This is true. In some cases, the acquiring company may be interested in diversifying its portfolio or expanding into a new market, and may not have prior experience or expertise in the target company's business. In such cases, extensive due diligence and strategic planning may be necessary to ensure a successful merger.

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