Mergers and acquisitions
19 important questions on Mergers and acquisitions
When are we talking about a Horizontal Merger?
When are we talking about a conglomerate merger?
When are we talking about a vertical merger?
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
For my 1st exam I got a C. Then, I started looking for ways to learn better and I came across Study Smart. Since then I have scored a A+, A, A- and another A. I highly recommend it to everyone who wants to hear it. I am so happy with it!!
I was struggling to finish all my first-year subjects for 3 years. Then I discovered Study Smart, which helped me to finish all of them within 3 months.
Because of StudySmart, things are going well in many ways. Before, I always had study stress and no time for anything. Now I feel calm and confident (because of the program). I used to score a B, now I usually score an A or A+.
Hey Chris, I really want to thank you very much for developing the platform, I usually got around C for my exams, now I scored an A+, an A and a A- !!
Since using Study Smart, my average has increased significantly. I even completed a statistics course with a A+ while I'm bad at statistics. I took on extra courses this year, because of Study Smart. Thanks so much!
Ever since I started studying with StudySmart I passed all my exams !!! No more re-sits!! At first, I was happy with a pass and now I only get good grades. Many thanks!
I aced all the courses I studied with Study Smart. For law, I first scored a D, and now an A! I’m 100% sure that I’ll pass all the courses I study with Study Smart.
I always thought I studied well. My grades were fine. I could never have imagined that applying these study skills would have such a huge and direct impact on my grades, my speed and the pleasure I have in learning.
For the first time, I finally feel totally confident about the way I learn. I have the perfect overview and make great progress in terms of speed and the grades I get. Thanks, Chris!
I immediately started to enjoy learning again, and my grades soared. All of a sudden, everything went better. I highly recommend Study Smart to all students..
Being able to create my materials online made the process of studying so much smoother and quicker. I no longer have to spend a huge amount of my time on creating my summaries.
At first, my notes were a mess. Now I use Study Smart to take my notes in a perfectly structured way. It helps me to save a lot of time and do other things I enjoy.
Students that study with Study Smart get better grades. The system applies all the learning methods in such a way that both well-performing students and students who struggle perform much better.
Hi Chris, I would like to thank you very much. Last year I scored C on a course, and this year I got an A+ thanks to your method! Thank you very much!
The largest effect is that my child is more enthusiastic about school! Every parent wants their children to be happy at school, Study Smart made it happen.
In high school, I failed several exams, and that has really changed now. I actually needed this tool very much back then. Since I started studying with StudySmart, I haven't had any D's. My average score is now an A and those are results I would have never had in the past
With my old method, I passed only 3 out of 8 courses. Since I started taking my notes digitally in Study Smart, I have passed all my courses on the first try. For me, StudySmart takes away the stress of wondering if I will pass or not.
Thanks to StudySmart, I passed all my exams, and with better grades than before! On top of that, I have mastered a very good study method now, which I am confident will help me earn my degree.
Does it make economic sense to merge for the following motives:
- Merging to achieve economics scale
- Merging to redeploy cash generated by a firm with ample profits but limited growth opportunities
- Merging to combine complementary resources
Motive 2 can also make sense, although merging is not the only way to redeploy excess cash
Does it make economic sense to merge for the following motives:
- Merging to reduce risk by diversification.
- merging just to increase earnings per share
Motive 2 may lead to a bootstrap effect wherein the combined firm's eps is higher, but if there is no real value derived from the merger, then combining the firms will not add value
Which of the following transactions are not likely to be classed as tax-free:
- Acquisition of assets
- a merger in which payment is entirely in the form of voting stock
- Cash acquisitions are generally taxable
- A merger with payment in shares is normally tax-free
Is it true that buyers usually gain more than sellers?
- Buying firms are typically larger than selling firms, so smaller benefits normally don't affect the buyer's share price by much
- The effect of competition among potential buyers
Is it true that firms that do usually well tend to be acquisition targets?
Is it true that merger activity in the united states varies dramatically from year to year?
Is it true that on the average, mergers produce large economic gains?
Is it true that tender offers require the approval of the selling firm's management?
Is it true that the cost of a merger to the buyer equals the gain realized by the seller?
What is meant with a purchase accounting?
What is meant with poison pill?
What is meant with the golden parachute?
Respond to the following comment:
Our cost of debt is too dam high, but our banks won't reduce interest rates as long as we're stuck in the volatile widget-trading business. We've got to acquire other companies with safer income streams.
Respond to the following comments:
Merge with fledging electronics? No way There P/E's too high, that deal would knock 20% off our earnings per share
Respond to the following comment:
Our stock's at an all-time high. It's time to make our offer to digital organics. Sure, we'll have to offer a hefty premium to digital stockholders, but we don't have to pay in cash. We'll give them new shares of our stock.
Suppose you obtain special information- information unavailable to investors- indicating that backwoods chemical's stock price is 40% undervalued. Is that a reason to launch a takeover bid for backwoods? Explain carefully
- This is an interesting question that centers on the source of the information.
- If you obtain the information from someone at backwoods Chemical whom you know has access to this valuable information and is breaching a fiduciary obligation by telling you, then you are guilty of Insider trading if you act upon the information
- However, if you come across the information as a result of analysis that you have done or research you have performed (which anyone could have done, but did not do), then you are free to act upon the information
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
