Which of the following is not one of the major common pitfalls of acquisition?
A) paying too much for the target firm
B) overdiversification
C) executives who are slow to make acquisition decisions
D) excessive debt after the acquisition

Question

Quizplus · Accepted Answer

The other three options are major common pitfalls of acquisitions. Overpaying for the target firm can lead to negative financial consequences for the acquiring company. Overdiversification can spread resources too thin and lead to a lack of focus. Taking on too much debt after an acquisition can put the acquiring company at risk if they are unable to repay the debt. However, executives who are slow to make acquisition decisions are not a major common pitfall. While it may result in missed opportunities or delay the benefits of an acquisition, it is not a common pitfall that is typically cited in discussions of the risks associated with acquisitions.

Which of the Following Is Not One of the Major