Page 211 - Microsoft Word - 00 CIMA F1 Prelims STUDENT 2018.docx

Financial and strategic implications of mergers and acquisitions

 Fixed operating and administrative costs savings.

 Consolidation of manufacturing capacity on fewer and larger sites.

 There may be bulk buying discounts.

 Possibility of joint advertising and distribution.

 GSL is badly managed – thus the elimination of inefficiency could allow
for financial synergy.

203