Question: Form an argument that mergers and acquisitions do not increase value for shareholders of the acquiring firm. You are talking with your work colleagues about
Form an argument that mergers and acquisitions do not increase value for shareholders of the acquiring firm.
You are talking with your work colleagues about the benefits of mergers and acquisitions. In your post take the position that a merger or acquisition increases value (or does not increase value) for the shareholders of the acquiring firm, depending on the first letter of your last name, as outlined above.
- Explain how and when analysts measure the changes in stock value related to a merger or acquisition for shareholders of the acquiring firm.
- Explain one research study that supports your position (as assigned above, by your last name). For guidance on this see the Original Research StudiesLinks to an external site. tip sheet and How to Search for & Identify Original ResearchLinks to an external site.
- Explain the implications of this question (of whether or not value is created) for management considering a possible merger or acquisition.
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