Despite disturbing discoveries during due diligence, Mattel acquired The Learning Company (TLC), a leading developer of software
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TLC also had substantially exaggerated the amount of money put into research and development for new software products. Nevertheless, driven by the appeal of rapidly becoming a big player in the children’s software market, Mattel closed on the transaction even though aware that TLC’s cash flows were overstated. After restructuring charges associated with the acquisition, Mattel’s consolidated net loss was $82.4 million on sales of $5.5 billion. Mattel’s stock fell by more than 35% to end the year at about $14 per share. What could Mattel have done to better protect its interests?
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Related Book For
Mergers Acquisition And Other Restructuring Activities
ISBN: 9780123854858
6th Edition
Authors: Donald M. Depamphilis
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