Which of the following is a reason why firms often overpay for the assets of an acquired firm?
A)Studies supporting the rise of failed companies post acquisitions
B)Evidence of high management turnover post acquisitions
C)The success rate of acquisitions exceeding that of failures
D)Interest of more than one party in acquiring a particular firm
E)Inevitable clash between cultures of acquiring and acquired firms

Question

Quizplus · Accepted Answer

Acquiring firms often overpay for the assets of the acquired firm. The price of the target firm can get bid up if more than one firm is interested in its purchase, as is often the case.

Which of the Following Is a Reason Why Firms Often