According to the ___hypothesis, in an acquisition or a takeover the bidder's management overvalues the target because they overestimate their ability to create value once they wrest control of the target's assets.

Question

Quizplus · Accepted Answer

The correct term is the "hubris hypothesis," which suggests that in mergers and acquisitions, the management of the acquiring company might overpay for the target company due to overconfidence in their ability to manage the target's assets effectively.

According to the ___Hypothesis, in an Acquisition or a Takeover