I need detailed long answer, more than 1 page, with references. True/ False - On average,...

I need detailed long answer, more than 1 page, with references.

True/ False - On average, acquisitions destroy shareholder value

Identify a corporate acquistion (within the last 10 years) which added value to the acquiring company and discuss a minimum of three (3) key factors which enabled their success?

Solutions

Expert Solution

Yes, there is definitely a proof and a perception that acquisitions have generally led to destruction of shareholder value as the acquirer company ends up paying more tha the fair value in a bid to acquire the target firm and this leads to destruction of value for the shareholders. This effect is visible in the form of a reduction int eh market capitalisation of the acquiring firm immediately after an acquisition has been announced.

An acquisition which has worked well for the acquiring firm has been the acquisition of "WhatsApp" by Facebook. This acquisition has been of strategic value for Facebook, since it has added the following aspects to the company:-

1) Addition in customer base - With acquisition of "WhatsApp", the number of customers using the platform has increased manifold which is likely to benefit Facebook due to the network effect.

2) Penetration into newer markets such as India: With acquisition of "WhatsApp", Facebook is likely to get a bigger share of the emerging market such as India which has a large population base.

3) Ability to launch fintech services: Using "WhatsApp" messaging platform, the company can launch newer platforms and diversify into payments business and launch a fintech offering thereby diversifying revenue.

jeff jeffy answered 7 months ago

Next > < Previous

Related Solutions

This is true and false and if the asnwer is false i need the correct answer....

This is true and false and if the asnwer is false i need the correct answer. _____ The least squares slope for predicting y from x is the same asthe least squares slope for predicting xfrom y _____ The least squares linepasses through the point of averages . _____ A residual is the deviation of a point from the point of averages _____ It is common to use a residual plotbased on plotting the residuals versus x. ______Theleast squares lineis...

True or False, explain your answer: a) An observation with a studentized residual of more than...

True or False, explain your answer: a) An observation with a studentized residual of more than 10 is probably an outlier. b) If assumptions are met, least squares residuals are not correlated with the fitted values. c) It is possible to reject a null hypothesis when the null hypothesis is true.

Write an essay from no less than 1 page and no more than 2 pages long...

Write an essay from no less than 1 page and no more than 2 pages long about how the sterilization is required in some products and their respective package, the product you will develop the essay about will be a product of your choice.

True or false: 1) If a nation is selling more goods and services to foreigners than...

True or false: 1) If a nation is selling more goods and services to foreigners than it is buying from them, then on net it must be selling assets abroad. 2) It is possible for a country to have domestic investment that exceeds national saving. 3) If a country’s trade surplus falls, its net capital outflow rises. 4) If the exchange rate is 80 yen per dollar, then a hotel room in Tokyo that costs 25,000 yen costs $200. 5)...

I need your answer for this question.Br//Ha State whether the following statements are true or false....

I need your answer for this question.Br//Ha State whether the following statements are true or false. Shortly explain your answer in 1-2 sentences. a) Labor Demand is more elastic in the long run than in the short run. b) In a simple model of labor demand with a competitive firm that uses capital and labor in production, the effect of a reduction in wages on the amount of capital used in production is ambiguous in the long run. c) In...

1) True or False: a) CH3Br is a more reactive electrophile than CH3Cl because Br is...

1) True or False: a) CH3Br is a more reactive electrophile than CH3Cl because Br is more electronegative than Cl b) Iodide anion is a more reactive nucleophile than bromide anion. c) Dehydrohalogenation of alkyl halides forms the trans-isomer as the major alkene product. d)The (E)- and (Z)- alkene isomers are a pair of diastereomers. e) The reaction between a secondary alkyl bromide and a sodium alkoxide salt (NaOR) gives a major product from nucleophilic substitution.

True or False? Explain. 1. T / F An export subsidy is more common than...

True or False? Explain. 1. T / F An export subsidy is more common than an export duty. 2. T / F Although it discourages most tariffs, the WTO allows an importing country to levy antidumping tariffs. 3. T / F Strategic trade policy and predatory dumping are weapons of economic warfare. 4. T / F Japan is the world’s leading steel exporter. 5. T / F If a country levies a countervailing duty against...

Each part should be no more than 1 page in length. Part I The rules of...

Each part should be no more than 1 page in length. Part I The rules of accounting provide management with “some” latitude in determining when revenue is earned. Assume that a company normally required acceptance by its customers prior to recording revenue as earned, delivers a product to a customer near the end of the quarter. The company believes that customer acceptance is assured, but cannot obtain it prior to the quarter-end. Recording the revenue would assure “making its numbers”...

True or false?(1 point each) When marginal product is less than average product, average product is...

True or false?(1 point each) When marginal product is less than average product, average product is decreasing. In the long run, fixed costs are small. Marginal cost is the increase in total cost that results from a one-unit increase in a variable input. The vertical distance between the average variable cost curve and the average total cost curve equals average fixed cost. Average fixed costs are constant. Perfectly competitive firms are price takers. In the long run, perfectly competitive firms...

Question 4 Is the following statement true, false, or ambiguous? Justify your answer. “Since long-run average...

Question 4 Is the following statement true, false, or ambiguous? Justify your answer. “Since long-run average cost cannot exceed short-run average cost, the long- run average cost curve is the locus of all of the minimum points of the short- run average cost curves.”

Subjects