Company experience and research findings have shown acquisitions typically ____ for the acquiring firm.
A) result in above-average returns
B) provide approximately average returns
C) result in returns near zero
D) take some time to achieve private synergy, but eventually result in above-average returns

Question

Quizplus · Accepted Answer

Studies have shown that acquisitions generally do not result in significant returns for the acquiring firm. In fact, many acquisitions fail to create any value for the acquirer and may even lead to a decline in performance. While there may be some exceptions where an acquisition leads to above-average returns, this is not the typical outcome.

Company Experience and Research Findings Have Shown Acquisitions Typically ____