Discuss the underlying theories and empirical evidence on the value creation from horizontal mergers. How do other firm- and deal- characteristics interact with the valuation effects of such mergers?

Q: The following are sensible motives for mergers EXCEPT:     a. Economies of scope   b. Reducing…

A: Answer

Q: Direction:  discuss how the following models are used.

A: Valuation model: Valuation models are the model that is adopted by the company to know the value of…

Q: What does it mean by "acquisitions versus alliance" when pertaining to diversifying and managing…

A: A company or a corporate entity or an organization can diversify and grow using different…

Q: what factors to consider within the cost/benefit analysis when deciding about joint…

A: Strategic alliance is referred to an arrangement, which is between two corporations in order to…

Q: Examine what the empirical evidence say about who actually gains in a merger combinations.

A: Merger is a corporate strategy to reduce the competition and expand business operations. Merger…

Q: What does empirical evidence suggest about the distribution of gains from mergers? Shareholders of…

A: Gain from merger can be calculated by analyzing the change in the total equity value of company…

Q: Which of the following is a financial synergy?

A: Due to synergies from mergers and acquisitions improve their debt capacities. Low cost of capital.

Q: Four economic classifications of mergers are (1) horizontal, (2) vertical, (3) conglomerate,and (4)…

A: Mergers are the financial strategies practiced by the firms to expand or diversify their business…

Q: s how break risk is

A: Introduction : Merger arbitrage can be understood as an investment technique in which an investor…

Q: Explain the mechanism of using financial leverage as a takeover defense tool

A: Leverage is an investment strategy of using borrowed money specifically, the use of various…

Q: What is the term use to describe making successive offers or asking prices in response to a lack of…

A: Mergers and Acquisition is the process by which a company consolidates or transfers the ownership of…

Q: Reasons for merger that will result in wealth maximization are strategic benefits, market power,…

A: Step 1   Company consolidation or acquisition can have a significant impact on a company’s growth…

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: a) What is a conglomerate merger and why are they more likely to be approved? b) Limit pricing is a…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The report should contain the following : -Introduction about the banks -Reasons for merger -…

A: The bank is a financial institution that helps in wealth creation through investments. Also, banks…

Q: What is financial merger?

A: Merger refers to the strategic alliance between the two companies to operate more efficiently with…

Q: Discuss how time to completion affects merger arbitrage traders’ returns.

A: Merger arbitrage is the business of trading stocks in companies that are involved in takeover and…

Q: What are the types of work performed, the overall areas of focus, and/or other relevant information…

A: The following types of works need to performed  1) sourcing the transaction 2) Appraising the deal…

Q: What are horizontal, vertical, congeneric, andconglomerate mergers? Are the different typesof…

A: Horizontal merger: If two companies combine to achieve the organizational synergies in the same…

Q: Find a recent merger transaction that failed due to regulatory concerns over market share…

A: Many a times regulators block a M&A (mergers and acquisitions) deal on the basis that it will…

Q: If a firm wishes to achieve immediate appreciation in earnings per share as a result of a merger,…

A: Appreciation- Appreciation, in universal terms, is a raise in the worth of an asset over time. The…

Q: Explain how researchers can study the effects of mergers on shareholder wealth.

A: Various researchers are analyzing the financial impact mergers have on stockholder wealth. All see…

Q: Define synergy. Is synergy a valid rationale for mergers? Describe several situationsthat might…

A: Answer: The definition of synergies is that the merger of two firm’s results in a product that is…

Q: what are elements of a unsuccessful merger deal and why?

A: Merger is a concept where two entities merge together to form 1 entity for conducting future…

Q: Which of the following LEAST accurately describes the advantages of specific types of mergers and…

A: Mergers and acquisitions (M&A) are business transactions in which two or more companies…

Q: Discuss the validity of risk diversification as a motivation for companies engaging in merger and…

A: Introduction : In simple words, when two companies join their operations to work together it is…

Q: Suppose you are the CEO of a large firm in a service business and you think that by acquiring a…

A: Value chain analysis is a tool used by companies in order to identify its primary & support…

Q: Which is not a valid, acceptable reason for companies to merge? Synergistic benefits arising from…

A: Acceptable reason for companies to merge Synergistic benefits - Example, market expansion,…

Q: What options does a company have if its board or management is opposed to an acquisition, a merger,…

A: Companies can use any of these defensive strategies to oppose an acquisition, merger or a takeover…

Q: Discuss the pros and cons of diversification as a rationale for mergers.

A: Pros of diversification as a rationale for mergers are as follows: Economies of scale: Mergers of…

Q: The cost of a merger may outweigh the potential gain if the: present value of the acquired firm…

A: Cost of merger will be  Cost of merger =Market value of target company-intrinsic value of target…

Q: The following are sentences relating to types of mergers and acquisitions. Which is/are true? [S1]…

A: Merger and Acquisition (M&A) is the process of bringing together of two or more companies, where…

Q: What is involved in valuing a merger using the ‘comparative firms’ approach.

A: Comparable Company Analysis is defined as the process or procedure, which used to determine the…