As far as the managerial talent of the target is concerned:
A) the manner in which the acquirer plans to deal with the managerial talent will affect the estimated cash flows to be generated by the target.
B) downsizing will reduce expenses and increase productivity and revenues.
C) governments of some countries are likely to intervene and prevent the acquisition if downsizing is anticipated.
D) all of the above
E) A and C only

Question

Quizplus · Accepted Answer

Option A is correct as the managerial talents are an important factor in the estimated cash flows, and the way the acquirer handles them will determine the success of the acquisition.

Option B is incorrect as downsizing may result in losing valuable employees and may have negative effects on productivity and revenues.

Option C is correct as some countries have laws or regulations that restrict or limit layoffs, and the government may intervene if downsizing is planned.

Therefore, the best choice is E as it includes the correct options A and C.

As Far as the Managerial Talent of the Target Is