2. Types of mergersMergers often are classified according to the merger's participants and their lines of business. Identify each of the following four types of mergers:DescriptionMotive for MergerA merger between the manufacturer and its supplier of raw materialsA merger between an electrical appliance company and a personal hygiene companyA merger between two retail giants producing the same type of clothingA merger between two technology firms that have no prior existing relationship and arenot competing with each otherIf McDonald's were to merge with Burger King, the merger would be described as a:O vertical mergerO horizontal mergerconglomerate mergerO congeneric merger

Mergers are a type of agreement where two or more companies decide to form a single entity to expand…

Answered: Mergers often are classified according…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Discuss the basic steps that the merging firms go through in a typical M&A process, starting from deal initiation until deal completion
Examples of two or more companies that have gone through merger and acquisition in most recent years?
Which of the following statements best describes the difference between a merger and joint venture? a. None of these statements provided differences the two. b. In a merger , two firms combine financial resoures to establish a new firm c. in a joint venture the bidding firm takes control o fthe control of the joint project. d. In a joint venture , firms agree to cooperate in pursuit of joint goal
Many companies have serious discussions aboutmerging. Sometimes these discussions lead tomergers, sometimes not. What are some factorsthat should be considered and that affect the likelihood of a merger actually being completed?
The combination of two or more companies to form a completely new corporation is a Select one: a. holding company. b. merger. c. congeneric formation. d. consolidation.
A conglomerate merger takes place between firms in completely different industries.; True or False
1. Company S and Company T combine to form a new Company ST by pooling all their assets and liabilities and issuing new ST shares to all shareholders in proportion to their previous shareholdings. How this transaction should be categorised? a) Merger b) Acquisition c) Spin-off d) De-merger
(Sudip Barua) Chapter : Merger and acquisition strategies. Describes the seven problem in ACHIEVING SUCCESS IN ACQUISITION in your own word ,which are given below: PROBLEMS IN ACHIEVING SUCCESS IN ACQUISITION 1.Integration Difficulties 2.Inadequate Evaluation of the Target 4.Inability to Achieve Synergy 5.Too Much Diversification 6.Managers Overly Focused on Acquisitions 7.Too Large
Mr Abdul Company face huge loss and Mr Ahmed Company also facing huge loss (Abdul Company + Ahmed Company) both joined together is treated as Select one: a. External reconstruction b. Merger c. Internal reconstruction d. Acquisition
The following are sentences relating to types of mergers and acquisitions. Which is/are true? [S1] Both horizontal and product-extension types of M&A involve catering to the same market group before and after the M&A. [S2] A vertical M&A involves a supplier or buyer of the acting firm as the target firm.a. Only S1 is true.b. Only S2 is true.c. Neither is true.d. Both are true.
Which one of the following statements correctly applies to a merger? Multiple Choice The acquiring firm does not have to seek approval for the merger from its shareholders. The shareholders of the target firm must approve the merger. The acquiring firm will acquire the assets but not the debt of the target firm. The merged firm will have a new company name. The titles to individual assets of the target firm must be transferred into the acquiring firm's name.
Define each of the following terms:a. Synergy; mergerb. Horizontal merger; vertical merger; congeneric merger; conglomerate mergerc. Friendly merger; hostile merger; defensive merger; tender offer; target company;breakup value; acquiring companyd. Operating merger; financial merger; equity residual method; market multiple analysise. White knight; white squire; poison pill; golden parachutef. Arbitrageg. Joint venture; corporate, or strategic, allianceh. Divestiture; spin-off; leveraged buyout (LBO); carve-out; liquidation

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