Bootstrap and white knight strategy

If someone is wanting to take over the company and we don’t want to be taken over by these people, then we look for someone else that we prefer and get them to take us over instead – we call them a ‘white knight’.

Bootstrapping can mean several different things (and because of this, the term itself is unlikely to be used in the exam). In the context of what you are asking, then if a company takes over another company with a higher PE ratio, then this will improve the PE for the enlarged company.