Studies have shown that the high premiums paid in many mergers are just about always justified by increased post-merger cash flows that come from synergies and economies of scale.

Question

Quizplus · Accepted Answer

Studies and empirical evidence often show that a significant number of mergers and acquisitions do not achieve their projected value or synergies, leading to the conclusion that the high premiums paid are not always justified by increased post-merger cash flows.

Studies Have Shown That the High Premiums Paid in Many