Acquisitions occur for many reasons. The most frequently cited reason is that the acquiring firm...

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Accounting

Acquisitions occur for many reasons. The most frequently cited reason is that the acquiring firm believes it can enhance the profitability of the target company in a manner that the company could not achieve in its existing ownership structure. In this way, the firm's assets might be worth more to an acquirer than the company as a free-standing entity.


Explain the three examples.

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