What has been the rationale for LVMH acquisitions?

Q: which of the following are potential areas for cost reduction with a merger or acquisition? (Check…

A: When two companies merge or when one company acquires another, the expectation is typically that…

Q: fair value model for investment property differ from the revaluation model for PPE

A: Fair value model and revaluation model are methods of valuation of non-current assets as per…

Q: Is there a need to regulate mergers? Explain

A: A contract under which two organizations unite to become a new organization is known as a merger.…

Q: How should a prospective buyer examine the assets of a company? Explai

A: Answer: Assets of the company is examined such that to identify the financial position of the…

Q: What are the sources of synergy after acquisitions and mergers?

A: Merger and acquisitions is two companies working together for the purpose of achievement of…

Q: What tax strategies are available to a company seeking to make an acquisition

A: A process known as an acquisition is when one firm buys all or the majority of the shares of another…

Q: Discuss the effects and procedure for mergers and acquisition.

A: SOLUTION- Mergers and acquisition is a part of almost every industry, as is its lasting effect on…

Q: What major concerns should investors consider when making an investment with a syndication?

A: The major concern that the investors results in investment with syndication is given below as,

Q: What are the elements of Press Release in Merger & Acquisition

A: Following are the elements of Press Release in Merger & Acquisition: (I) Information of the Firm…

Q: What has been the likely effect of the Gramm-LeachBliley Act on financial consolidation?

A: The Gramm-Leach Bliley act is a act that has been enacted in order to explain the provisions of the…

Q: hich of the current asset holding policies is theoretically the least profitable? Group of answer…

A: A company's working capital policy refers to the amount of money invested in current assets in order…

Q: What is the difference between an acquisition and a merger?

A: Mergers and acquisitions refer to the process in which two companies are consolidated by means of…

Q: What is meant by asset transformation and how is it the basis for differentiating between indirect…

A: Finance transformation can be defined as a business-wide combination of process, system, and culture…

Q: What connection, if any, does a firm’s market value have with its liquidation and/or going concern…

A: Liquidation- It is a state when the business of the entity is going to wind up by selling the net…

Q: What effect, if any, would the payment of dividends by a controlled entity, out of its…

A: Consolidation refers to the process of combining the financial statements of a parent company and…

Q: What constraints affect dividend policy?

A: Stability of earnings is one of the important factors influencing the dividend policy. If earnings…

Q: How does the presence of an indirect ownership (such as a father-son grandson relationship) affect…

A: Father-son grandson relationship: The father-son-grandson relationship refers to the business…

Q: If you are planning an acquisition that is motivated by trying to acquire expertise, you are…

A: In the context of strategic business acquisitions centered on expertise, the primary objective is…

Q: What does the empirical evidence say about capital structure theory? What are the implications…

A: Introduction: Capital structure relates to financing of the overall activities and development of a…

Q: Why does IPO underpricing exist?

A: IPO - IPO stands for Initial Public Offer. When company want to list their shares on the stock…

Q: Distinguish between operating mergers and financial mergers.

A: Definition: Merger: A process or an agreement where two or more firms combine together to form one…

Q: Which of the following are common takeover tactics?     a. Bear hugs b. Open market purchases c.…

A: Common takeover tactics The acquisition of a business by another business is referred to as a…

Q: Which of the following is not an important factor to assess when identifying appropriate precedent…

A: The Precedent analysis is a valuation technique in which the past Merger and Acquisition…

Q: What is a LIFO liquidation?

A: Last-in-First-Out (LIFO): In this method, items purchased recently are sold first. So, the value of…

Q: What is the purpose of valuation in terms of mergers and acquisition?

A: Purpose of the valuation in terms of mergers and acquisition. Merger Merger means when two or more…

Q: How are acquisition costs recorded in a merger?

A: Acquisition costs: These are the costs incurred in the process of acquisition.

Q: Equity accounting for intercorporate investment relies on book value. But if the ownership is an…

A: Intercorporate investment is defined as an investment where a company makes an investment in another…

Q: What is capitalization and what are its capabilities?

A: Capitalization may likewise state as the idea of changing over some thought into a business or…

Q: In current asset management, what is the float? How would paying by check allow a business to take…

A: A Float is a gap of time between the recording of the transaction and the actual fund being…

Q: How does shareholder value relate to capital structure?

A: The combination of various types of external funds, known as capital, used to finance a corporation…

Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.