Of the many reasons discussed in your readings for making acquisitions, the rationale that may be the strongest is that acquisitions allow firms to capture new capabilities. From among the other...

Acquisition is a business tool which is initiated by the two different companies for their
mutual benefit under the same brand. The major reason for acquisitions is to capture new
capabilities. Acquisitions are done in order to gain synergy which increase the value generation
of the company. Acquisitions are done by the company to extent their product line which would
help them in growing and increasing their market base. Another major advantage in acquisitions
is gaining the cost efficiency. Not only cost efficiency but also the saves tax for the acquiring
company. There can be time when company acquires a loss making company that results the
acquirer in saving much of the tax for the company that acquires the minor company. Acquisition
also helps company to end the competition if horizontal merger strategy is initiated by the
acquirer. This kind of merger will reduce the competition and the acquirer company will gain the
significant market share. But some acquisition strategies have strong rationale behind the
acquisition while others are weak. The assignment identifies the strongest rationale and the
weakest rationale behind acquisition.
Apple Inc has one of the strongest rationales for acquisition. The rationale is to acquire
skills and intellectual property (Thomas, 2012). Some instances of acquisitions done by Apple...