Mergers & Acquisitions - Answer Sheet

1. Before completing a(n) acquisition, a company must assess the target company's assets and liabilities.

2. A(n) merger occurs when two companies combine to form a single entity.

3. In a(n) hostile takeover, a company tries to acquire another against the wishes of its management.

4. The goal of many mergers is to create synergy, where the combined company is stronger than the individual parts.

5. The process of reviewing a company's financial and legal standing before a deal is called due diligence.

6. An important part of any acquisition is determining the correct valuation of the target company.

7. After a merger, the integration phase ensures that systems, cultures, and operations align smoothly.

8. A company must get approval from its shareholders before proceeding with a merger.