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A merger is the amalgamation of two companies upon mutual consent. The process of merger works in a way that stockholders of the old firm can acquire stocks of the new firm only if they decide to give up their existing stock holdings of the old firm. As a student, if you are tensed about completing your regular homework and submitting to your professor on time, then there is some good news for you. Through myhomeworkhelp.com you can now get the solutions to your home assignments most conveniently by just opting for Operating Synergy & Pure Diversification: Theory of Mergers Assignment Help from us.

Know some facts about Operating Synergy & Pure Diversification
The basic idea behind operating synergy theory of merger is that there are economies of scale in the industry and the level of output produced by a firm prior to its merger is inadequate to utilise these economies of scale. These scale economies attained through vertical, horizontal and conglomerate mergers can only be used to the full brim when enormous amounts of output are being manufactured using the ample supplies of equipment and labour. Diversification through mergers is advantageous to firms, owners of firms as well as to the managers. Here timing plays a crucial role as quite often many firms are found to seek this option simultaneously.

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