Without effective due diligence, the:
A) acquiring firm is likely to overpay for an acquisition.
B) firm may miss its opportunity to buy a well-matched company.
C) acquisition may deteriorate into a hostile takeover, reducing the value-creating potential of the action.
D) firm may be unable to act quickly and decisively in purchasing the target firm.

Question

Quizplus · Accepted Answer

Without effective due diligence, the acquiring firm may not accurately assess the value of the target company, leading to overpayment.

Without Effective Due Diligence, The