Bu231 - Mergers and Acquisitions Exam 1 || With Questions & All Correct Solutions (Rated A+)
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Course
Mergers and Acquisitions
Institution
Mergers And Acquisitions
Bu231 - Mergers and Acquisitions Exam 1 || With Questions & All Correct Solutions (Rated A+)
Bu231 - Mergers and Acquisitions Exam 1 || With Questions & All Correct Solutions (Rated A+)
What are five important factors in a transaction? - ANSWER - 1) character of the buyer (strategic vs. financi...
, Bu231 - Mergers and Acquisitions
Exam 1 || With Questions & All Correct
Solutions (Rated A+)
What are five important factors in a transaction? - ANSWER - 1) character of the
buyer (strategic vs. financial buyers)
2) process and attitude of the deal-making (friendly vs. hostile)
3) means of payment (stock vs. cash)
4) time horizons (example: LBO exit horizon)
5) what happens to target management
What is a general Merger?
Examples? (2) - ANSWER - A merger is when two companies, one target and one
acquirer, combine and one of the original companies survives.
Example:
A+B=A
or
A+B=B
What is a consolidation?
Example? - ANSWER - A consolidation is when two companies become a new
company.
Example:
A+B=C
What are the two views regarding value created by business lawyers? Elaborate on
each view. - ANSWER - The two views are unfavorable view and favorable view.
Unfavorable view: lawyers reduce the value of a transaction.
Favorable view: lawyers increase the value of the transaction.
What are two ways lawyers create value? - ANSWER - The two ways lawyers create
value is from public ordering and private ordering.
Public Ordering
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