Conduct a merger using an investment bank

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Question: Is it typically necessary for a company to use an investment bank to conduct a merger? Mergers are fairly common in the U.S. There are a variety of reasons why mergers occur between two companies. One reason is because of a synergy. Under a synergy, the goal is to increase the value of combined company. There can be synergies from such areas as increased market power, operating economies, and differential efficiency. Another reason for a merger is for tax reasons. Additionally, other mergers occur for diversification reasons or for an officer's own incentives.

Reference no: EM131793463

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