Evidence suggests that acquisitions usually lead to favourable financial outcomes, especially for the acquiring firm.

Question

Quizplus · Accepted Answer

Research and empirical evidence suggest that acquisitions do not always lead to favourable financial outcomes for the acquiring firm. Many acquisitions fail to achieve their intended goals, and a significant number can erode shareholder value due to various factors such as overpayment, cultural mismatches, and integration challenges.

Evidence Suggests That Acquisitions Usually Lead to Favourable Financial Outcomes