Why do firms purchase other corporationsdo firms pay too

Assignment Help Financial Management

Reference no: EM13387538

Many corporate acquisitions result in losses to the acquiring firms' stockholders. A coworker has asked you to explain what a firm would gain from purchasing another corporation. Explain to the coworker the fundamentals of corporate acquisitions.

Research corporate acquisitions using your text, course materials, and Web resources and then answer the following questions:

Why do firms purchase other corporations?Do firms pay too much for the acquired corporation? Why do so many acquisitions result in shareholder losses?

Make sure to go beyond the basics on explaining items such as to grow or expand a business. There are other instances in which M & A’s are suitable.

Additionally, make sure not to ignore the topic of shareholder loss. Shareholders are found to often lose in these transactions and the expectation is not for you to identify this but to explain why it may occur

Reference no: EM13387538

Questions Cloud

Answer the following five questions on a separate document : directions answer the following five questions on a separate document. explain how you reached the answer or show your

Evaluate the demand equation using log-linear regression of : a vendor is interested in the best price to charge at his various dispensers located in a given area. over a period of

Describe the function of the contract explain the terms of : what is the function of the contract? what are the terms of the contract? why is it important to specify the terms of

Define the term benchmarking and how does it affect : you have been part of the orthopedic center for 5 years. in that time you have seen the center grow and the need for

Why do firms purchase other corporationsdo firms pay too : many corporate acquisitions result in losses to the acquiring firms stockholders. a coworker has asked you to explain

Yearly rates are 4 5 6 7 and 8 for the next five years : 1.what theory most identifies with the term structure of interest rates? and why? 2.what is evidence that does not

In todayrsquos uncertain economic and regulatory : in todayrsquos uncertain economic and regulatory environment for the health services industry many organizations may be

Many would argue that investment in small businesses has : 1.many would argue that investment in small businesses has slowed in recent years. nbspwhat factors could you identify

A steady income to producers and fair return on capital for : the mission statement for the organization of petroleum exporting countries states the mission of the organization of

User Account

All Pages