Humming inc. is interested in acquiring birdco, a supplier of materials for humming's products, and feels that it could improve the management of birdco. current management has been lax in monitoring product quality, Which could lead to recalls or lawsuits. management of birdco is not supportive of a merger because they could lose their positions, whereas most of the shareholders support the acquisition as a method of obtaining new management. there is a very small minority of shareholders who do not want to be shareholders of humming. birdco holds assets of $5 million with a basis of $6 million. its liabilities are $2 million. Which of the following would be the best solution for humming in its acquisition of birdco?
a. Offer a generous severance package to the current management of birdco in order to gain their support for the acquisition and ensure a smoother transition.
b. Conduct a thorough quality control audit of birdco's products and address any issues before finalizing the acquisition to mitigate potential risks of recalls or lawsuits.
c. Negotiate with the minority shareholders who do not want to be part of humming to buy out their shares at a fair price, or consider other options such as offering them a stake in humming instead.
d. Work with the supportive shareholders and the management of birdco to create a new management structure that ensures a successful integration of the two companies, addressing concerns and maximizing benefits for all stakeholders.