Which of the following is one of the reasons that acquiring firms often overpay for the assets of the acquired firm?
A)Studies showing that,on average,the profits and market shares of acquired companies skyrocket following acquisitions.
B)After an acquisition,many acquired companies experience high management turnover.
C)Studies showing that the vast majority of acquisitions are judged to be very successful.
D)The price of the target firm can get bid up if more than one firm is interested in its purchase.

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 One of the Reasons That