Exam 18: Corporate Restructuring

If a firm is afraid of being prevented from using a certain supplier due to a proposed merger, what type of merger is the proposed merger likely to be?

A reorganization in bankruptcy is a business plan that enables a bankrupt firm to continue operating. The acceptability of a plan depends upon the following criteria:

Which of the following is incorrect? Merger analysis is:

When an acquiring firm pays too much for an acquisition the real losers are the acquirer's top management and board of directors.

An investment banker's role in a merger might include:

Generally, what minimum level of ownership guarantees control of a firm?

Mergers are accomplished only with the approval of the acquired firm's management.

The type of business combination in which the acquiring firm becomes the parent and the target a subsidiary is:

An agreement under which creditors accept partial payment in settlement of their claims is a:

What type of merger listed below would have the most need for a holding company?

The price premium in a merger is the difference between the price offered for the target company's stock and:

Accelerated debt is an anti-takeover strategy in which the target's debt must be paid off in the event it is taken over.

Antitrust laws are intended to maintain a competitive economy.

Golden parachutes are exorbitant severance packages offered to the target's top management should they be fired after a takeover.

Control obtained through the solicitation of proxies is never sufficient to achieve a takeover.

A combination of two entities in which only one legally ceases to exist is:

In a vertical merger or combination, the firms involved are in supplier-customer relationships.

Landmark Hotels is in the hospitality industry. Management is considering acquiring Wind Flower, a small chain of luxury resorts. In this way, Landmark can save the expense of starting its own line of resorts from scratch. What kind of a merger will this be?

In merger analysis, a terminal value represents:

Which of the following led to the end of private equity dominated merger activities in 2008?