Which of the following is FALSE about the friendly acquisition process?
A) A friendly acquisition involves estimating the value of the firm using information provided by the firm.
B) The due diligence process is the investigating of the correctness of information provided by the target.
C) The no-shop clause prohibits the acquiring firm to look into other target firms.
D) The confidentiality agreement prohibits the disclosure of private information about the target firm.

Question

Quizplus · Accepted Answer

The no-shop clause actually prohibits the target firm from seeking out or entertaining other potential buyers, not the acquiring firm from considering other targets.

Which of the Following Is FALSE About the Friendly Acquisition