All Matches
Solution Library
Expert Answer
Textbooks
Search Textbook questions, tutors and Books
Oops, something went wrong!
Change your search query and then try again
Toggle navigation
FREE Trial
S
Books
FREE
Tutors
Study Help
Expert Questions
Accounting
General Management
Mathematics
Finance
Organizational Behaviour
Law
Physics
Operating System
Management Leadership
Sociology
Programming
Marketing
Database
Computer Network
Economics
Textbooks Solutions
Accounting
Managerial Accounting
Management Leadership
Cost Accounting
Statistics
Business Law
Corporate Finance
Finance
Economics
Auditing
Hire a Tutor
AI Study Help
New
Search
Search
Sign In
Register
study help
business
venture capital and the finance of innovation
Questions and Answers of
Venture Capital And The Finance Of Innovation
4. Discuss some important factors that may affect partial acquisitions and target firm performance.
3. Discuss how a partial acquisition may affect future firm performance and shareholder value.
2. What are the motivations behind a partial acquisition?
1. How does a partial acquisition differ from a full acquisition? What are the benefits of studying partial acquisitions?
4. Product market competition in domestic and international market should drive out potential inefficiency in an organizational structure. If this view is true, what would be the proportion of
3. From the perspective of outside investors, what are the potential merits of investing in a well-diversified firm instead of holding a portfolio of similar focused firms? Discuss the implications
2. Some argue that the observed diversification discount is attributable to measurement errors and self-selection bias. This implies that firms, on average, make the right decisions involving
1. Some view emerging capital markets as inefficient in allocating resources for firms having good growth potential. Discuss the potential benefits and costs of corporate diversification for firms
5. What are some potential downsides to sellers in pursuing a dual tracking strategy?
4. In what ways can dual tracking help not only buyers but also sellers of newly public firms?
3. What other instruments are available to buyers to address information asymmetries in acquisitions and make a deal happen?
2. How can IPOs and their characteristics help to reduce the effects of adverse selection?
1. What is the theoretical link between IPOs and M&As that helps to explain the dual tracking phenomenon?
4. Would requiring firms to seek fairness opinions from entities specializing in valuation and not advising on the deal effectively mitigate the conflicts of interest facing investment banks?
3. What mechanisms can protect shareholders against the conflicts of interest associated with fairness opinions?
2. How can fairness opinions destroy shareholder value in M&As?
1. How can fairness opinions provide value to shareholders in M&As?
4. Looking at existing evidence about M&As and alliances, which strategy is associated with larger wealth creation?
3. Joint ventures are less common than other alliances. What are the costs and benefits associated with joint ventures?
2. When will management prefer an alliance over an M&A?
1. Evidence indicates three M&A deals for every alliance, suggesting a preference for control. What are the reasons an entrepreneur looking to acquire assets may prefer an acquisition over an
5. How can an acquiring firm manage the various sources of foreign exchange risk arising from a cross-border acquisition?
4. What factors should be used to determine the choice of the currency in the valuation analysis? Under what circumstances would one method be preferred over another?
3. Explain whether foreign acquisitions are an effective means of arbitraging regulatory and other institutional controls.
2. Explain whether international acquisitions are an effective means of expanding market share and market power.
1. Why do M&As make sense for firms even during economic downturns?
5. Has the target firm complied with all local reporting structures, or has it been audited or fined recently?
4. Does the target company have any cash, and if so, is it local or overseas? Does its treasury strategy complement the acquiring firm’s strategy? Are there any legal constraints on dividends or
3. What is the target company’s effective income tax rate, and how does it compare with the acquiring firm’s tax rate and with that of its competitors?
2. Would the host country’s legal, accounting, and tax regime allow for regular repatriation of cash, and if so, how efficiently?
1. Does the target firm have an organizational structure that can serve its business needs and handle tax, finance, and treasury functions on a global basis? If so, to what extent does this structure
4. How do private equity firms that focus on LBOs differ from venture capital firms in the way they create value for their portfolio companies?
3. What are some of the potential sources of value creation in public-to-private LBO transactions?
2. How is the structure of private equity deals likely to evolve after the end of the latest private equity boom?
1. How can the cyclicality of private equity activity be explained?
4. What is debtor-in-possession (DIP) financing? What explains the increasing prevalence of DIP financing in Chapter 11 reorganizations?
3. What is the most extreme example of antitakeover protection?
2. How do share repurchases serve as a defense against takeovers? Does the type of repurchase program matter?
4. How can agency theory be linked to behavioral aspects in M&As?1. If share repurchases and dividends appear to be substitute payout methods, why did corporations not repurchase more intensely
3. Why do cash-financed mergers typically outperform stock-financed deals?
2. How do neoclassical and behavioral theories explain merger waves?
1. Describe the implications of neoclassical merger theory for the motivations and performance implications of M&As.
5. How does corporate restructuring affect bondholder wealth?
4. What are public-to-private transactions and their relevance in corporate restructuring?
3. What are the key types of corporate restructuring?
2. What are the agency costs of debt?
1. What are the agency costs of outside equity?
4. Is an unregulated market for corporate control beneficial for shareholders? If yes, explain the circumstances in which this would be true.
3. Which antitakeover strategy is best for management entrenchment? Why?
2. Stockholder A’s primary objective is short-term stock price appreciation whereas stockholder B wants long-term stock appreciation. What type of preventive measure and remedial takeover
1. After the financial crisis of 2007 to 2009, some U.S. politicians called for better shareholder protection in hostile takeovers. Which developments during the financial crisis caused this call for
6. What are toeholds and how do they benefit acquirers?
5. What is the role of collars and termination fees in takeover offers?
4. What are the main determinants of the method of payment choice in takeovers? Does the form of compensation have any relationship with postacquisition performance?
3. What is the difference between friendly and hostile takeover offers?
2. Do taxes affect acquirers’ takeover strategies? If so, how?
1. What is the nature of free-rider problems in potential target firms? How can acquirers mitigate such problems?
3. What is the contribution of the social integration and organizational justice literature in M&As?
2. How do researchers view the integration process in M&A literature?
1. A high level of organizational fit assures smooth integration without any problems.Comment on this statement.
6. How should M&A performance be measured?
5. What integrating mechanisms can the integration leader use during the integration process?
4. What are the distinctive features of the integration manager?
3. Who are the leading actors in the integration process?
2. What is the integration process?
1. Why are M&As depicted as a process, and what does that imply?
4. Describe the private component of the takeover process of the $4.57 billion merger between McClatchy (acquirer) and Knight Ridder (target), announced on June 13, 2006.(Note: As a starting point,
3. List and discuss five factors that help explain the choice of selling method (negotiation versus auction).
2. According to Boone and Mulherin’s (2009) framework, what are the different steps in the private component of the takeover process?
1. Prior literature documents that the average bid premium and abnormal returns obtained by target shareholders are roughly the same for auctioned and negotiated deals. Therefore, the wealth effects
4. Why should a seller’s negotiating team predict the issues that will be negotiated and identify potential trade-offs on these issues?
3. How should a buyer’s management handle a situation in which the press reports a rumor, which is true, that acquisition negotiations are taking place?
2. How could the CFO of a buyer in negotiations for an acquisition prevent information leaks?
1. Assume that a CFO of a publicly held company had not previously been part of a negotiation process. How could the CFO prepare himself and his management team for the negotiation process if a
If the FTC objects to the transaction, will the buyer, seller, or both have the right to terminate the definitive agreement?
Must the buyer either have the cash on hand to finance the purchase price or have a commitment from lenders to fund the purchase price before the seller signs the definitive agreement? How firm must
What consents may be required from lenders and others as a condition to closing? How far in advance of closing must these consents be obtained?
Will the seller have golden parachutes in place for executive officers and key employees? Will the buyer demand that the golden parachute agreements be renegotiated or eliminated?
What process will the buyer and seller use in order for the buyer to conduct preliminary due diligence (before the definitive agreement is executed) so as not to alert employees (other than the
Will the buyer have a certain period of time to continue to conduct due diligence with the right to terminate the agreement if it is not satisfied with the results of the due diligence? When will the
If the buyer’s shareholders must approve the deal, will the buyer pay a break-up fee to the seller if the buyer’s shareholders do not approve?
If the seller’s shareholders do not approve the deal, will there be a break-up fee and, if so, how much?
Will there be a break-up fee (and how much) if the seller, in the exercise of its fiduciary duty to its shareholders, agrees to be acquired by another company at a higher price after a definitive
What price will the seller or its shareholders receive and how will the buyer pay this price? If the deal is an all-cash deal, reaching an understanding on price is fairly easy. If, however, the
5. When two companies with distinct cultures merge, how can the integration process offer the greatest chance for success?
4. What steps can organizations take to make sure that newcomers will fit in with their culture?
3. How does fitting within an organization’s culture affect job performance and organizational commitment?
2. What are some ways in which an organization reveals its culture?
1. How do organizations maintain their cultures? How do they change them?
6. What is the debt overhang problem and how does it affect the financing decision in M&As?
5. Does regulatory environment affect the takeover financing decision? Why or why not?
4. Why does the market negatively react to the announcement of a takeover involving equity financing and payment?
3. What determines the means of payment choice in corporate takeovers?
2. What are the main determinants of the takeover financing choice?
1. What is the difference between the sources of financing and the means of payment?
4. How is the recent trend of emerging market firms acquiring firms abroad different from or similar to those of developed market firms acquiring abroad?
3. Chari, Ouimet, and Tesar (2010) find that majority control plays an important role in acquirer firm wealth gains when conducting M&As in emerging markets. The authors find that majority control
2. Discuss the reasons cross-border M&As are successful or unsuccessful.
1. Discuss the motivations to engage in cross-border M&A activities.
5. Why are courts so involved with protecting the interests of the minority in squeeze-out mergers?
Showing 1 - 100
of 401
1
2
3
4
5