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(Solved): Synergy occurs when the performance of the combined entity is better than the performance of separat ...



Synergy occurs when the performance of the combined entity is better than the performance of separate entities. Synergy is the reason why the combined value of the firm (target+ acquirer) increases slightly at the M&A announcement. All of the following are sources of synergy, except_________ Group of answer choices revenue enhancement replacing existing "toad kissing" management (see class slides for explanation) cost reductions tax gains (lower tax payments) eliminating inefficiencies in the target firm empire building reducing workforce (firing workers) in overlapping resources



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