Which of the following is true regarding M&As?
A) As many as 70 percent of M&As reportedly fail.
B) Target firms, after being acquired and becoming internal units, often perform better than when they were independent, stand-alone firms.
C) The only identifiable losers are the shareholders of target (acquired) firms.
D) The outstanding success of M&As is due to pre- and post acquisition phases.

Question

Quizplus · Accepted Answer

As per the statement, it is mentioned that up to 70 percent of M&As reportedly fail. Therefore, option A is true. Option B is incorrect because it says that target firms perform better after being acquired, which is not always true. Option C is also incorrect because there can be several other losers, such as the employees of the target firm who may lose their jobs, or even the shareholders of the acquiring firm if the M&A does not create value. Option D is also incorrect because the statement does not give any information to support this statement.

Which of the Following Is True Regarding M&As