Who benefits the most from the acquisition premium valued during an acquisition?
A) The shareholders of the acquiring firm
B) The shareholders of the target firm
C) The opportunistic partner
D) The partner who possesses hard-to-imitate capabilities

Question

Who benefits the most from the acquisition premium valued during an acquisition? 
A) The shareholders of the acquiring firm 
B) The shareholders of the target firm 
C) The opportunistic partner 
D) The partner who possesses hard-to-imitate capabilities

Quizplus · Accepted Answer

The acquisition premium is the extra amount that the acquiring firm pays for each share of the target firm during an acquisition. This premium is paid to the shareholders of the target firm who benefit the most from the deal, as they receive a higher price for their shares. The acquiring firm's shareholders may also benefit, but not as much as the target firm's shareholders. Therefore, option B is the best answer.

Who Benefits the Most from the Acquisition Premium Valued During