Exam 10: Studying Merges and Acquisitions

The potentially conflicting needs of strategic interdependence and ________ can affect optimal organizational structure following a merger or acquisition.

According to data compiled from SDC Platinum in Exhibit 10.4, acquisition activity peaked closest to the year ________.

How do cost savings help create synergy?

Research suggests that firms average about ________ acquisition(s) per year.

Firms have synergy when they can control prices.

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

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

Executive compensation tends to be linked to firm size.

When a firm develops a capability rather than acquires it, the firm is using the vehicle of ________.

Diversification of a firm's revenue stream creates immense value for shareholders.

What is managerialism?

The amount received by the target firm's shareholders in excess of the value of their stock during a merger or acquisition is called ________.

With a roll-up, the acquiring company is trying to maintain the nature of industry competition.

Financial markets tend to not accept cost savings as a rationale and are less likely to reward savings-motivated mergers and acquisitions with higher stock prices.

All of the following are possible motives behind mergers and acquisitions except ________.

Synergy may derive from all of the following sources except ________.

Acquisitions enable firms to ________.

When using mergers and acquisitions as substitutes for research and development, the objectives include ________.

Various tax benefits may provide unique financial synergies.

In a ________ acquisition, one company buys another that offers essentially the same products as the buyer but that has a presence in a geographic market in which the buyer has no presence.