Strategic decision to acquire another company


Task:

I am part of a company who has made the strategic decision to acquire another company. There are two possible implementation strategies for this decision:

A. Merge the acquired company into your company. The result of this strategy will be one company containing the elements of both companies.

What are the pros and cons of this implementation strategy?
How will I know if the strategy is working?

B. Operate the acquired company as a separate business entity. The result of this strategy will be two separate companies under one senior management "umbrella" (the senior management team that is responsible for running both companies).

What are the pros and cons of this implementation strategy?

How will I know if the strategy is working? Please advise

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Accounting Basics: Strategic decision to acquire another company
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