Which of the following might prevent an acquisition?
  1. Strong synergies
  2. Anti-trust
  3. EBITDA
  4. Economies of scale
  5. Decreased marginal cost
Explanation
Answer: B - Anti-trust could prevent an acquisition. The government has the ability to scuttle an acquisition if it gives too much market power to a certain firm.

Key Takeaway: You must consider anti-trust before making an acquisition recommendation. It might be a great strategy for Microsoft to acquire Apple, but there is no way in a billion years the US government would allow it to happen.
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