All of the following are often cited as factors critical to the ultimate success of the integration effort except for
A. Plan carefully, act quickly
B. The use of project management techniques
C. Early communication from the top of the organization
D. Salary and benefit reductions for many employees of the acquired company in order to realize cost savings
E. Making the tough decisions as early as possible
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Rapid integration is usually important for all of the following reasons except for
A. Minimizes employee turnover
B. Improves the morale and productivity of current employees of both the acquiring and acquired firms
C. Builds confidence in current employees in the competence of management
Dispenses with the need for pre-integration planning
E. Reduces customer turnover
Which of the following are commonly used sources of financing for M&A transactions?
Asset based lending
B. Cash flow based lending
C. Seller financing
D. A and B only
E. All of the above
All of the following are true of buyer due diligence except for
A. Due diligence is the process of validating assumptions underlying valuation.
B. Can be replaced by appropriate representations and warranties in the agreement of purchase and sale.
C. Primary objectives are to identify and to confirm sources and destroyers of value
D. Consists of operational, financial, and legal reviews.
Endeavors to identify the “fatal flaw” that could destroy the deal
The negotiation process consists of all of the following concurrent activities except for
A. Refining valuation
B. Deal structuring
C. Integration planning
Due Diligence
E. Developing the financing plan