Imagine that you own a local fitness gym in your hometown called "U-Fit." You have done well over the last few years and have enough capital to acquire your hometown competition, the "Pump It" gym. Why would it be a good idea for you to undertake a horizontal merger or acquisition?
a. To tap into a new market formerly unavailable to one of the companies.
b. To take advantage of synergies and potential market share gains.
c. To increase synergies by merging firms that would be more efficient operating as one.
d. To use your expertise to improve the company and then sell it for a higher price.