Modelo De Timmons Robinson

shareholders to defer any capital gain resulting from the transaction. If the transaction is not tax free, the seller normally wants a higher purchase price to compensate for the tax liability resulting from the transaction (Ayers, Lefanowicz, and Robinson, 2003). These issues are discussed in more detail in Chapter 12. Market Power The market power theory suggests that firms merge to improve their monopoly power to set product prices at levels not sustainable in a more…