- Strategic transaction
- A target firm is acquired based in part on the synergies it brings to the acquirer.
- Financial transaction
- It occurs when there are no synergies.
- A acquiring firm does not own a company in the same industry with the target's; so acquiring firm cannot merge the target company with another company, i.e. no synergies.
Wednesday, January 26, 2011
Financial Transaction and Strategic Transaction
Labels:
CFA Level 2 (June 2011),
F
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