Describe some of the positives and negatives from the point of view of both the acquirer and the target in a merger.  What is the usual impact on the stock prices of each?

Q: Is synergy a valid rationale for mergers?

A: Synergy: The definition of synergies is that the union of two company’s fallout in a product that is…

Q: Direction:  discuss how the following models are used.

A: Valuation model: Valuation models are the model that is adopted by the company to know the value of…

Q: Why might two companies choose to form a strategicalliance rather than pursue a merger or an…

A: A strategic alliance is an agreement between two companies to work together on a mutually beneficial…

Q: What is a typical merger premium paid in a merger or acquisition? What effect does this premium have…

A: A merger premium is usually paid over the purchasing corporation's pre-merger price. The premium is…

Q: Examine what the empirical evidence say about who actually gains in a merger combinations.

A: Merger is a corporate strategy to reduce the competition and expand business operations. Merger…

Q: What does empirical evidence suggest about the distribution of gains from mergers? Shareholders of…

A: Gain from merger can be calculated by analyzing the change in the total equity value of company…

Q: What is a deal (and acquisition) where the buyer's stock fell and the target's stock rose?

A: Acquisition - is the purchase of one company by the another. Example: Purchase of Time Warner by AT…

Q: What a Merger of Equals (MOE) means for shareholders

A: When two firms of same size join together to form a firm it is known as Merger of Equals (MOE).

Q: s how break risk is

A: Introduction : Merger arbitrage can be understood as an investment technique in which an investor…

Q: What is the term use to describe making successive offers or asking prices in response to a lack of…

A: Mergers and Acquisition is the process by which a company consolidates or transfers the ownership of…

Q: Define strategic alliance and joint venture, and explain whya company would choose these options…

A: Strategic alliance and Joint venture are arrangements for co-operation between two or more business…

Q: As a merger arbitrageur you are considering an investment in two target companies of a merger, A and…

A: The deal spread of A is 16% The deal spread of B is 8%

Q: In the context of Merger & Acquisition, What is the definition for Purchase Price and why is it…

A: Merger refers when two or more companies merge to form a single legal entity. Mergers are made so…

Q: what are elements of a successful merger deal?

A: Merger means combination of two or more than two companies to merge into a new entity to earn more…

Q: When an acquirer chooses between cash offer or stock offer, which of the followings is the least…

A: Acquisition refers to obtaining the other company wholly or partially by paying the cash…

Q: What are the elements of Press Release in Merger & Acquisition

A: Following are the elements of Press Release in Merger & Acquisition: (I) Information of the Firm…

Q: The report should contain the following : -Introduction about the banks -Reasons for merger -…

A: The bank is a financial institution that helps in wealth creation through investments. Also, banks…

Q: Discuss how time to completion affects merger arbitrage traders’ returns.

A: Merger arbitrage is the business of trading stocks in companies that are involved in takeover and…

Q: Look at a recent example of a merger announcement, and log on to the website of the acquiring…

A: the details explanation are as follows.

Q: Describe briefly four factors which explain why shareholders of acquiring companies rarely benefit…

A:

Q: Explain what is involved in valuing a merger using the ‘comparative firms’ approach.

A: Valuation is referred as the quantitative method to estimate the fair value of an assets or a…

Q: Discuss the underlying theories and empirical evidence on the value creation from horizontal…

A: A Horizontal Merger happens when organizations working in something very similar or comparable…

Q: Explain how researchers can study the effects of mergers on shareholder wealth.

A: Various researchers are analyzing the financial impact mergers have on stockholder wealth. All see…

Q: Define synergy. Is synergy a valid rationale for mergers? Describe several situationsthat might…

A: Answer: The definition of synergies is that the merger of two firm’s results in a product that is…

Q: what are elements of a unsuccessful merger deal and why?

A: Merger is a concept where two entities merge together to form 1 entity for conducting future…

Q: Discuss the key distinction between using cash and using stock for financing mergers.

A: Merger is an agreement which binds the two existing companies into a one new company. There are…

Q: What options does a company have if its board or management is opposed to an acquisition, a merger,…

A: Companies can use any of these defensive strategies to oppose an acquisition, merger or a takeover…

Q: Discuss the pros and cons of diversification as a rationale for mergers.

A: Pros of diversification as a rationale for mergers are as follows: Economies of scale: Mergers of…

Q: What is the relevance of Leveraged buyouts (LBOs) to Mergers, Acquisitions and Divestitures?

A: Mergers, Acquisitions and Divestitures generally require a large amount of funds to finance the…

Q: In case of a firm facing an unfriendly merger, offer might arrange to be acquired by a different,…

A: Step 1  Mergers and acquisitions (M&A) are transactions in which the ownership of firms,…

Q: Which of the following statements regarding merger deals is (are) correct? Choose all correct…

A: Merger: A merger is an arrangement that combines the operations of two different firms into a single…

Q: What important issues should management consider prior to a merger or acquisition? What are the…

A: Important issues that management should consider prior to merger or acquisition as shown below:…

Q: Merger Tax Effects A takeover bid can be structured in different ways, making it either a taxable or…

A: Correct Statements with respect to acquisition are as follows: Pooling of interest method - Assets…

Q: What method is used to account for mergers?

A: Merger is when two companies are liquidated to form a joint new company.

Q: Explain how purchase accounting is implementedin a merger. Does the accounting profession nowrequire…

A: Purchase accounting can be defined as the practice of revising the assets and liabilities of the…

Q: The following are sentences relating to types of mergers and acquisitions. Which is/are true? [S1]…

A: Merger and Acquisition (M&A) is the process of bringing together of two or more companies, where…

Q: What is involved in valuing a merger using the ‘comparative firms’ approach.

A: Comparable Company Analysis is defined as the process or procedure, which used to determine the…