






Study with the several resources on Docsity
Earn points by helping other students or get them with a premium plan
Prepare for your exams
Study with the several resources on Docsity
Earn points to download
Earn points by helping other students or get them with a premium plan
Community
Ask the community for help and clear up your study doubts
Discover the best universities in your country according to Docsity users
Free resources
Download our free guides on studying techniques, anxiety management strategies, and thesis advice from Docsity tutors
BUSA 4980 Exam 2 with Questions and Answers What do we know about M & A's? ANSWER -Deals, in general, are more likely to destroy value than create value -Studies show that more than 50% of M&As fail -Employee turnover for the acquired firm increases significantly within the following year Due diligence ANSWER -The process of evaluating a target firm for acquisition. -Ineffective due diligence may result in paying an excessive premium for the target company winner's curse ANSWER the most optimistic bidder usually over-estimates the true value of the firm increased market power ANSWER M&As can be used to counteract competitive forces in the industry (according to five forces model) market power is increased by: ANSWER -acquisitions of competitors in the same industry -vertical acquisitions of suppliers or distributors of the acquiring firm. -Acquisition of substitute producers entry barriers ANSWER Factors associated with the market or with the firms operating in it
Typology: Exams
1 / 12
This page cannot be seen from the preview
Don't miss anything!