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Question
Explain how differing assumptions about market growth, potential synergies, and the size of the potential liability related to product recalls affected the bidding?
Answer
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Acquiring companies often find themselves with certain assets and operations of the acquired company that do not fit their primary strategy. Such assets may be divested to fund future investments. True of False
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Management may sell assets to fund diversification opportunities? True or False
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True or False
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Which of the following is true about integration planning? Without integration planning, integration is not likely to
a. Provide anticipated synergies
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e. All of the above
Q:
Which of the following is not typically true of post-closing evaluation of an acquisition?
a. It is important not to change the performance benchmarks against which the acquisition is measured
b. It is critical to ask the tough questions
c. It is an opportunity to learn from mistakes
d. It is commonly done
e. It is frequently avoided by acquiring firms because of the potential for embarrassment.