Match List I with List II:

​Choose the correct answer:​

Correct option is A

The correct match is:

• A – Acquire synergistic product/market position → III
  The goal here is to combine operations in a way that produces scale economies—cost advantages gained due to increased output or efficiencies in production, distribution, or technology.

• B – Acquire a company with underutilized financial strength → I
  This refers to leveraging the acquired company's borrowing capacity or hidden financial assets to quickly generate performance benefits.

• C – Acquire an underskilled company in a related industry → IV
  When a company lacks certain skills (e.g., marketing, technology, operations), the acquirer can bring in superior expertise to improve its performance.

• D – Acquire an underexploited physical asset → II
  This is a strategic resource play. By buying undervalued or underutilized physical assets (like land, factories), the acquirer positions itself to benefit from future value appreciation or shortages.

Information Booster:

• Synergistic acquisitions aim to create value greater than the sum of two firms operating separately.

• The main source of synergy is cost reduction or revenue enhancement.

• Synergy can result from economies of scale, technology sharing, brand extension, and more.

• Most effective when firms have complementary strengths.

• Post-merger integration is critical to realize expected synergies.

• The goal is to reduce duplication, improve efficiency, and gain market power.