Which of the following is TRUE regarding M&As?
A)As many as 70 percent of M&As reportedly fail.
B)On average, the acquiring firms' performance improves after acquisitions.
C) The outstanding success of M&As is due to pre- and postacquisition phases.
D) The only identifiable losers are the shareholders of target (acquired) firms.

Question

Quizplus · Accepted Answer

Studies have shown that a significant percentage of M&As fail, with as many as 70 percent reportedly failing to achieve their intended goals. Therefore, option A is true. Option B is incorrect as studies have shown mixed results regarding the acquiring firms' performance after acquisitions. Option C is incomplete as it fails to mention the potential reasons for pre- and post- acquisition success. Option D is also incorrect as there may be other losers, such as employees and customers of the acquired firm.

Which of the Following Is TRUE Regarding M&As