As far as the managerial talent of the target is concerned:
A) the manner in which the acquirer plans to deal with the managerial talent will affect the estimated cash flows to be generated by the target.
B) downsizing will reduce expenses and increase productivity and revenues.
C) governments of some countries are likely to intervene and prevent the acquisition if downsizing is anticipated.
D) A and C only
E) all of the above

Question

Quizplus · Accepted Answer

Option A is correct as the managerial talent of the target is an important aspect to consider for estimating the cash flows to be generated after the acquisition. The acquirer's plans for dealing with the managerial talent will have an impact on the target's performance.

Option B is not completely accurate as downsizing may not always increase productivity and revenues. It could also negatively impact morale and lead to a loss of key expertise.

Option C is relevant in certain countries where governments may intervene and prevent layoffs or downsizing. This could happen in countries where there are strong labor laws or regulations to protect employment.

Hence, options A and C are both correct and the answer is D.

As Far as the Managerial Talent of the Target Is