When an acquiring firm pays too much for an acquisition the real losers are the acquirer's stockholders.

Question

Quizplus · Accepted Answer

When an acquiring firm pays too much for an acquisition, it can lead to a decreased value in the company and a reduction in stockholder returns. This is because the acquisition may not generate enough profits to cover the high cost, leading to a decrease in overall company value and ultimately negatively impacting the stockholders.

When an Acquiring Firm Pays Too Much for an Acquisition