Which of the following is NOT an area of potential mutual benefit in a friendly acquisition transaction
A)Careful tax planning to utilize all available options
B)Legal structuring such that certain liabilities may be avoided
C)'Cherry-picking' more valuable assets
D)Avoiding the use of incentive agreements to avoid agency costs

Question

Quizplus · Accepted Answer

Avoiding the use of incentive agreements does not represent a mutual benefit in friendly acquisition transactions. Incentive agreements are often used to align the interests of the management teams of the companies involved, thereby reducing agency costs and ensuring that both parties work towards the success of the acquisition.

Which of the Following Is NOT an Area of Potential