Problem 1) Name three of the ten Change Forces.
Problem 2) The greatest change force is technological changes - Is this true or false?
Problem 3) What is the difference between Merger and Tender Offer?
Problem 4) M&A activities include:
A) Joint Ventures
B) Divestitures
C) Carve-outs
D) Spin-offs
E) All of the above
Problem 5) Define what "Hostile Takeovers" are.
Problem 6) Name two characteristics that a firm may possess that make it vulnerable to a takeover.
Problem 7) The study of valuation is important for M&A because a major cause of acquisition failures is that the bidder pays too much. Is this true or false?
Problem 8) The leading methods used in the valuation include:
A) comparable companies or comparable transactions approach
B) spreadsheet approach
C) formula approach
D) All of the above
Problem 9) Valuation is central to the merger process? Is this true or false?
Problem 10) Firms should merge only if the value to shareholders will be enhanced. Is this true or false?
Problem 11) Internal control mechanisms for effective corporate governance include the board of directors, ownership concentration, and executive compensation. Is this true or false?
Problem 12) Outside control mechanisms for effective corporate governance include stock price performance, institutional investors, proxy contests, and takeovers. Is this true or false?
Problem 13) List three reasons why mergers fail.