Question 4) In a broad auction, the buyer list typically includes:
a.
Only strategic buyers
b.
Only financial sponsors
c.
A mix of strategic consultants and valuation experts
d.
A mix of strategic buyers and financial sponsors
Question 8) A typical Confidentiality Agreement for the sale of a private target includes provisions governing the following:
I. Use of information
II. Term
III. Permitted Disclosures
IV. Terms of Stapled Financing
V. Non-solicitation / no-hire
VI. Standstill agreement
VII. Restrictions on capital structure
VIII. Return of confidential information
a.
V, VI, VII and VIII
b.
I, II, III and IV
c.
III, IV, V and VI
d.
I, III, V and VIII
Question 4) In a broad auction, the buyer list typically includes:
| a. | Only strategic buyers | |
| b. | Only financial sponsors | |
| c. | A mix of strategic consultants and valuation experts | |
| d. | A mix of strategic buyers and financial sponsors |
Question 8) A typical Confidentiality Agreement for the sale of a private target includes provisions governing the following:
I. Use of information
II. Term
III. Permitted Disclosures
IV. Terms of Stapled Financing
V. Non-solicitation / no-hire
VI. Standstill agreement
VII. Restrictions on capital structure
VIII. Return of confidential information
| a. | V, VI, VII and VIII | |
| b. | I, II, III and IV | |
| c. | III, IV, V and VI | |
| d. | I, III, V and VIII |
Related questions
Question 9) Are potential acquisition candidates included in a CIM (Confidential Information Memorandum)?
| a. | Yes, occasionally. | |
| b. | Always. | |
| c. | Never. | |
| d. | Yes, in a modified version of the CIM for strategic buyers only. |
Question 15) If more than ___% of an acquirer's pre-deal common shares outstanding are being offered as a form of consideration in a transaction, the acquirer needs to obtain shareholder approval.
| a. | 25% | |
| b. | 10% | |
| c. | 15% | |
| d. | 20% |
Question 2) The disadvantages of a broad auction include:
I. Limiting buyers negotiating leverage
II. Difficult to preserve confidentiality
III. Ability to approach all possible buyers
IV. Highest business disruption risk
| a. | II and IV | |
| b. | II, III and IV | |
| c. | I, III and IV | |
| d. | I, II, III and IV |
