- Words: 1251
- Length: 4 Pages
- Topic: Business
- Paper #: 44653741
M&a activity can be conducted in order to lower a firm's cost of capital. This can be done either by lowering the firm's total risk through diversification, by absorbing a company in a lower-risk business than the new parent company, or by using the M&a activity as an opportunity for arbitrage, taking advantage of disequilibrium between currencies and interest rates in two different nations.
Corporate organization and ownership issues can