Mergers: Read the case and answer the questions.

Gaurav owned an event management company called 'Lotus Ltd.' in Mumbai. He used to organise weddings. meetings, conferences, etc. These events were full of activities, music, food and entertainment. He used to outsource decoration material, food as well as entertainment from different vendors.

Ms. Geetika was an owner of catering and decoration company called Miles Ltd. in Mumbai. She used to cater the food and decoration needs of various customers such as corporate as well as family functions.

Gaurav & Geetika were performing well in their respective businesses until covid-19 lockdown was introduced. Due to lack of demand for food, decoration and events, both the companies started facing losses. As the lockdown was lifted, nearly after a year, both Gaurav and Geetika were facing problems in managing their increasing operational costs with lesser number of customers. As they were planning to look for better business opportunity, they got to meet each other at an 'exponential' organised by trades of Mumbai at BKC ground.

In this 'exponential', there were different traders sharing their business ideas with each other. Hence, it was here that Gaurav and Geetika decided to restart their business by merging their operations with a new company name. 'G² Lotus Miles Ltd'. They both shared their contacts of vendors and sutomers with each other and started getting order for events, food, decoration, entertainment, etc. Their business started blooming as their costs were lesser and more customers with demand of services given by Gaurav and Geetika.

Now its been two years that both of them have grown their business into other cities of Maharastra like, Pune, Ahmednagar and Nagpur under the company name of 'G² Lotus Miles Ltd'. The company is growing with increased annual sales of 30%.

If Gaurav could raise sufficient funds to acquire 'Miles Ltd. This acquisition would be called:

Friendly Acquisition

The correct answer is option (1) - Friendly Acquisition