Exam 10: Studying Merges and Acquisitions

The motives behind mergers and acquisitions can fall into a basic category called synchronicity.

After PayPal was acquired by eBay, it became the de facto payment standard on the biggest locus of small business in the world.

How do cost savings help create synergy?

All of the following are notable acquisition mistakes except ________.

With ________, a firm seeks to become a large regional, national, or international player in what has likely been a fragmented industry.

A supplier may not make an investment that is specific to one buyer for all except which of the following reasons?

Briefly explain the four stages of an acquisition.

When deciding to enter a new business, companies have alternative vehicles to choose from, including all of the following except ________.

In a roll-up, the acquiring company usually replaces the management of acquired companies.

An integration manager is appointed to oversee the merger of two firms.

In a product/market extension, the objectives include ________.

A danger of developing a new business over acquiring an existing one is that the firm may ________.

Exaggerated managerial self-confidence that may result in an overestimation of the value of a potential acquisition is referred to as ________.

An acquisition ensures that a firm enters a new business with viable competitive strength.

The strategy where a firm sells off a business decision is referred to as ________.

The final price actually paid to target shareholders of an acquired company is called the ________.

Acquisitions are common in industries in which technology advances slowly and methodically.

What are the three basic issues related to the potential success of mergers and acquisitions?

If a target company in an acquisition has operating loss carry-forwards that cannot be fully utilized, the acquiring company can use them to reduce the tax bill of the combined firm.

Entry by acquisition may foster ________.