BUS 478 Study Guide - Final Guide: Takeover Target, Due Diligence, Market Power

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 478
• Professor: Rui Jorge Basto da Silva

Document Summary

These notes are made from the testbook and. During the recent financial crisis, m&a activity __ declined__, whereas in 2011, Shareholders of firms often earn above average returns. When one firm buys 100% interest in another firm: false the majority of acquisitions increase long-term value for the acquiring firm, not rationale for acquisition to decrease taxes paid by shareholders. Takeover - target firm does not solicit the acquiring firm"s bid, Cross border acquisition made to overcome barrier to entry in another country. Market power derived from size of firm, its resources and. Problem with being too large: increased bureaucratic controls. All acquisitions are likely to undergo regulatory review and analysis by financial markets. Internal product development carry high risk of failure. Managers see product development as high risk because 60% of innovations at imitated so they acquire instead. Acquiring companies with new products is not risk free if it"s a substitute for .