Most of the empirical evidence about success in acquisitions is concerned only with acquirer and target shareholders.It shows that:
A)target shareholders do well
B)acquirer shareholders do well
C)both groups of shareholders do well
D)neither group of shareholders does well

Question

Quizplus · Accepted Answer

Most of the empirical evidence suggests that target shareholders do well in acquisitions. This is because they typically receive a premium over the pre-acquisition market price of their shares. On the other hand, acquirer shareholders may not do so well, as they often have to pay a premium for the target company and may also face the costs of integrating the two firms. Therefore, the best choice is A.

Most of the Empirical Evidence About Success in Acquisitions Is