Many corporate acquisitions result in losses to the acquiring firms' stockholders. A coworker has asked you to explain what a firm would gain from purchasing another corporation. Explain to the coworker the fundamentals of corporate acquisitions.
Discussion Board Assignment Guidelines:
- Research corporate acquisitions using your text, course materials, and Web resources and then answer the following questions: Post a new topic to the Discussion Board that contains your answers to the above questions.
- Why do firms purchase other corporations?
- Do firms pay too much for the acquired corporation?
- Why do so many acquisitions result in shareholder losses?