ch04 企业合并会计.pptVIP

Growth Methods of a Firm Internal Expansion External Expansion (MA) A comparison of two growth strategies Why vertical integration? Greater efficiency Reduced uncertainty Monopoly power Barriers to entry Greater efficiency Problems with vertical integration Reduce its ability to respond to changing market demands Opportunity costs Why diversification? Stability Maintaining profitability Growth Why merger? Merger for growth Merger for economies of scale Merger for increased market valuation Merger to reduce uncertainty Merger due to opportunity Other motives Other motives Avoid