Mergers are more likely to be successful if:
A) They are hostile
B) They are friendly
C) They involve high premiums
D) The managers of the acquired firm leave to make way for new managers

Question

Quizplus · Accepted Answer

Mergers that are friendly are more likely to be successful because both companies are willing to work together towards common goals. This can lead to better synergies and a smoother integration process. Hostile takeovers, on the other hand, can create animosity between the two companies and make it difficult to achieve a successful integration. High premiums may make the deal more attractive to the shareholders of the acquired firm, but it does not necessarily guarantee success. Similarly, while new management may bring fresh perspectives and ideas, it is not a guarantee for success either.

Mergers Are More Likely to Be Successful If