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    Synergy, and Upstream Sale and Downstream Sale

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    Please help with the following problems. Provide brief solutions. Include references in the solution.

    1. Discuss the term "synergy" and whether or not completed mergers attain synergistic effects as are often anticipated before the merger.

    2. Distinguish between an upstream sale of inventory and a downstream sale. Why is it important to know whether a sale is upstream or downstream?

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    https://brainmass.com/business/mergers-and-acquisitions/synergy-upstream-sale-downstream-sale-251814

    Solution Preview

    1. Discuss the term "synergy" and whether or not completed mergers attain synergistic effects as are often anticipated before the merger.

    Synergy is the ability of different entities to cooperate or co-exist to achieve a goal. The surviving entity usually attains synergistic effects as are often anticipated before the merger. For example, the merger of the Bank of America and Security Pacific Bank "suggests that synergy resulted from ...

    Solution Summary

    The following posting includes a problem about mergers and acquisitions. This response explains what synergistic effects are and the difference between upstream and downstream sales of inventory.

    $2.19

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