Which of the following is probably the least likely reason for acquirers to pay too much in an acquisition?
A) Overbidding
B) Over optimistic appraisal of market potential
C) Over estimation of synergies
D) Overuse of conventional financial statements

Question

Quizplus · Accepted Answer

Overuse of conventional financial statements is probably the least likely reason for acquirers to pay too much in an acquisition because financial statements are typically used to determine the value of the target company and to evaluate the potential risks and benefits of the acquisition. However, overbidding, over optimistic appraisal of market potential, and over estimation of synergies are common reasons for overpaying in an acquisition.

Which of the Following Is Probably the Least Likely Reason