M&A Professional Certificate Question Bank

In the years before the 2008 credit crisis, private equity represented the following percent of merger and acquisition deals: 30% In any given year, the volume of mergers and acquisitions is closely tied to: High stock prices and available debt financing - to assist buyers in raising acquisition finance On a global basis, the merger and acquisition business is: A cyclical business On a global basis, most acquisitions are smaller than US$100 million. True What is a key constraint in emerging market Mergers and Acquisitions? Family business involved in emerging markets Why do China and many other emerging markets restrict Mergers and Acquisitions? Governments worried about possible layoff from competitors combining and political unrest A "cash flow" loan is: A loan that seeks repayment principally from future earnings since the borrower lacks sufficient collateral What percent of global Mergers and Acquisitions is emerging markets based? 15% Why does a management team want to grow a company? Select the one best answer. Growth companies receive higher value multiples in the stock market Which growth tactic is more risky from an operational point-of-view? Growing a business through new product development