Exam 7: Acquiring and Integrating Businesses

A ____ is a specialized type of acquisition in which the target firm reacts negatively to the acquiring firm's offer.

If a firm generates excessive debt after an acquisition, credit rating agencies will reduce its credit rating. This reflects the fact that the firm

When multiple acquirers bid up the price of a target and the ultimate acquirer ends up paying too much this is known as the

What is due diligence, and what questions does due diligence answer?

Poor financial performance as a result of changing environmental conditions is driving consolidation in the airline industry.

Northwest Airlines has been acquired by Delta. This is an example of a ____ acquisition.

With all the attention paid to target screening, selection, negotiating, and due diligence, why are irrational acquisitions made? What is a means of preventing these dysfunctional acquisitions?

The number of acquisitions involving firms from different countries continues to increase.

Leveraged buyouts (LBOs) usually require significant amounts of debt to execute.

The typical organizational response to overdiversification is

If the due diligence team turns up ____ this may signal possible unethical decisions made by the target firm.

The acquisition of DirecTV by News Corporation is an example of a horizontal acquisition.

An acquisition will ultimately succeed or fail on the basis of

When the company can sell its products above competitive prices or when its costs are below those of its primary competitor, the company has

When an unexpected and exciting acquisition opportunity occurs, the organization needs to be ready to act immediately and to be prepared to rethink the organization's basic strategy.

Some acquisitions are made to build capabilities. Others are made to gain market power, reducing costs, or increasing growth. Briefly describe these four reasons, and clarify the main difference between the building capabilities motivation and the other three motivations for acquisitions.

It is more likely that centers of excellence will emerge after an acquisition if the purpose of the acquisition was to

The four basic questions of due diligence include all of the following except

The first step in the acquisition decision making process is

Which of the following is not one of the major common pitfalls of acquisition?