Exam 10: Studying Merges and Acquisitions

_____ is a major factor in making mergers and acquisitions work.

When two organizations have a lot in common, cultural differences are limited.

Explain some of the more complex forms of acquisitions.

The resource-based view of competitive advantage says that one reason for acquiring another firm would be to absorb and assimilate the target's real estate holdings.

The purpose of a(n) ________ acquisition is to reduce the number of competitors in a mature industry in which capacity exceeds decreasing demand.

The financial success of any acquisition has a significant effect on the overall economic logic of a firm's strategy.

Through acquisition, the buyer firm eliminates a competitor that would otherwise remain in the market.

The combination of two or more firms through a pooling of interest is referred to as a(n) ________.

Acquiring firms is more likely to realize synergies when managerialism and hubris are kept in check.

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

Acquisitions that result in diversification are used in the staging of corporate strategies.

Define acquisition.

What is an acquisition premium and how does it relate to a firm's new situation?

Managers often have unsound confidence in both their valuations of acquisitions and in their ability to create value.

Technological integration is critical in most acquisitions because of the time value of money.

A class of mergers between firms of similar size and influence are referred to as ________.

What are some possible negative effects of hubris on acquisitions?

The greater the cost in capital and time, the more synergies managers need to create from the acquisition.

A geographic roll-up occurs when a firm acquires firms that are in the same industry segment but in many different geographic arenas.

Markets make important adjustments in the valuation of a firm by doing all of the following except ________.