Potential acquirers should stop stating the synergy aspect of their future deals because this hurts them in
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"Potential acquirers should stop stating the synergy aspect of their future deals because this hurts them in two ways. First, targets find out what the expected synergies are and extract the present value of those by demanding a higher takeover premium. Second, buyers always mess up the planning and the implementation of post-merger integration, so they never extract the synergies and end up with failed deals. Buyers can simply spare their own shareholders the future disappointment by keeping quiet."
Briefly but carefully discuss whether you agree with this position. Why or why not?
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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