Studies have shown that acquiring firm shareholders tend to realize minimal gains,if any,due to
A)the target firm and acquiring firm being too similar in size.
B)the target firm's being acquired for less than their true value.
C)merger gains being underestimated.
D)overinflated synergy estimates.
E)negative purchase premiums.

Question

Quizplus · Accepted Answer

Overinflated synergy estimates refer to the expectation of greater cost savings and revenue increases than are actually achieved, leading to disappointment and minimal gains for acquiring firm shareholders.

Studies Have Shown That Acquiring Firm Shareholders Tend to Realize