Question: (a) Explain the major justifications likely to be put forward to explain the following types of acquisitions: (i) horizontal acquisitions; (ii) vertical backwards and forwards

(a) Explain the major justifications likely to be put forward to explain the following types of acquisitions:

(i) horizontal acquisitions;

(ii) vertical backwards and forwards acquisitions;

(iii) conglomerate acquisitions.

(5 marks)

(b) Discuss reverse takeovers under the following headings:

i. meaning

ii. advantages

iii. disadvantages

(5 marks)

(c) Discuss the use of the price/earnings ratio and dividend growth methods of determining the value of a target company. (5 marks)

(d) Explain why a company may wish to divest part of its operations. (5 marks)

(e) Discuss the use of the price/earnings ratio and dividend growth methods of determining the value of a target company. (5 marks)

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