Question

In: Finance

Dear All Could you please answer the below question. I would expect a long answer to...

Dear All

Could you please answer the below question. I would expect a long answer to may consist of 1500 words.

"It has been argued in the finance literature that a great majority of mergers lead to value destruction. Citing empirical evidence, discuss whether you agree or disagree with this statment".

Thank you!

Solutions

Expert Solution

MERGER AND VALUE DESTRUCTION

Mergers and acquisitions destroy the shareholder value in the acquiring company. The reasons are many. In some cases the merger bring together a group of people who work in different types of companies in different cultures. The problem is that they don't "merge'' actually. This will definitely affect their performance in future.

Overvaluing an acquisition is the another cause of loss of shareholder value. The managers may be distracted and may not be able to focus on business operations until the dust is settled. Mergers seems to pull the companies back from achieving the objectives as fast as they stand separate.

We can agree to this statement. Unless and until it is necessary, the companies should not opt merger or acquisitions. Because the post merger integration is very difficult. Example: Acquisition of Snapple by Quaker oats. The value was destroyed because of this takeover.


Related Solutions

Dear All, Could you please answer the below question and kindly if there are any further...
Dear All, Could you please answer the below question and kindly if there are any further links regarding the similar assignment, kindly send it and this assignment is 2500 word long, I will kindly appreciate a long answer. "Conduct a comprehensive evaluation of a recently reported corporate event relating to the change in the capital structure of companies Conduct a comprehensive evaluation of a recently reported corporate event relating to the change in the capital structure of companies" Thank you!
Dear All, Could you please answer the below question. "Given all-time low-interest rates, companies should borrow...
Dear All, Could you please answer the below question. "Given all-time low-interest rates, companies should borrow long term and use the borrowed money to takeover other firms. Discuss with suitable reasons, citing empirical evidence, whether you agree or disagree with this statement" Thank you!
Dear, Could you please answer below question. "Discuss the main theories that have proposed over the...
Dear, Could you please answer below question. "Discuss the main theories that have proposed over the years that formulate why firms merge and takeovers happen" Thank you!
Hello, could you please provide a detailed answer to below question? Question: Given all time low...
Hello, could you please provide a detailed answer to below question? Question: Given all time low interest rates, companies should borrow long term and use the borrowed money to takeover other firms. Discuss with suitable reasons, citing empirical evidence, whether you agree or disagree with this statement.                
Please answer all If you can't answer all then please don't answer just one question. i...
Please answer all If you can't answer all then please don't answer just one question. i need all 2. You would like to buy a house in in 16 years and estimate that you will need a deposit of $73,014. You plan to make bi-weekly deposits into an account that you hope will earn 7.05%. How much do you have to deposit every two weeks? 3. You have accumulated $1,085.55 in debt by buying things on Amazon during quarantine.  The minimum...
PLEASE ANSWER ALL OF THE QUESTION. PLEASE IN\DICATE THE QUESTION THEN THE ANSWER BELOW Reproduction A...
PLEASE ANSWER ALL OF THE QUESTION. PLEASE IN\DICATE THE QUESTION THEN THE ANSWER BELOW Reproduction A 33 year old woman and her 32 year old husband have been trying to have a baby for over a year. Unfortunately, they have not yet been able to conceive. The woman has been tracking her cycle and does not have a regular 28 day cycle. Both husband and wife are somewhat healthy, non-smokers and occasional drinker, although the women has given up drinking...
Hi. Please could I get a complete answer to the question below using c++ and codeblocks...
Hi. Please could I get a complete answer to the question below using c++ and codeblocks Add a recursive member function to bSearchTreeType that returns the depth of a given node whose info member contains a specific value, and returns -1 if the node is not in the tree. For example, tree in figure 11-8 on page 622 of Malik,z the depth of 40 is 4, the depth of node 50 is 1 etc. Use the following header:    template<class...
Hi. Please could you assist me with the question below. I found the same question on...
Hi. Please could you assist me with the question below. I found the same question on the Chegg website, unfortunately, the answer given does not make use of the driver function which is required by the question. Please could you provide me with the full code for this question, including the main function using c++ and codeblocks. The standard recursive version of the Fibonacci function (explained in Malik pg. 379) is extremely inefficient due to identical calls being repeated. Consider...
Please answer all fo the following questions. 1. Describe a population where you would expect to...
Please answer all fo the following questions. 1. Describe a population where you would expect to find a low frequency of adult lactose tolerance. 2. Why is adult lactose tolerance infrequent in that population? 3. Describe a population where you would expect to find a high frequency of adult lactose tolerance. 4. Why is adult lactose tolerance frequent in that population?
Please answer the below questions ( I need answers for all the below questions). Thank you...
Please answer the below questions ( I need answers for all the below questions). Thank you True or False Write true if the statement is true or false if the statement is false. _______ The heart consists mainly of muscle. _______ Blood pressure is highest in veins. _______ Atherosclerosis is the buildup of plaque inside arteries. _______ Platelets are blood cells that fight infections. _______ Peripheral gas exchange takes place in the lungs. _______ Food travels from the mouth to...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT