Business – 1.3 Size of business – Business growth | e-Consult
1.3 Size of business – Business growth (1 questions)
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| Aspect | Friendly Merger | Hostile Takeover |
| Process | Negotiated agreement; board of target approves; often involves due‑diligence and shareholder vote. | Acquirer bypasses board; may use tender offer or proxy fight; target resists. |
| Motivations | Synergies, market expansion, cultural fit, mutual benefit. | Strategic asset acquisition, undervalued target, defensive move against competitors. |
| Outcomes – Target | Often retains some influence; smoother integration; staff morale higher. | Potential leadership turnover; cultural clash; possible legal battles. |
| Outcomes – Acquirer | Greater certainty of integration; lower risk of post‑deal disruption. | Higher acquisition cost (premiums); risk of integration failure; reputational risk. |