Which are the following statements about pre-merger planning is untrue?
A)It is easier to predict the outcomes of horizontal M&A than other types of M&A
B)In the case of horizontal M&A,it is easier to predict the impact on revenues than the impact on costs
C)The outcomes of a hostile acquisition are more difficult to predict than the outcomes of a friendly acquisition
D)Acquisitions that are directed towards a firm reinventing its business model should be regarded as riskier than those which leverage its existing business model.

Question

Quizplus · Accepted Answer

In the case of horizontal M&A, it is generally easier to predict the impact on costs due to potential synergies and cost savings, rather than the impact on revenues, which can be more uncertain.

Which Are the Following Statements About Pre-Merger Planning Is Untrue