M&A Basics
This strategy involves two firms integrating as equals.
What is a merger?
Lets firms set prices lower.
What is market power?
These were once used but are now risky and less common.
What are junk bonds?
The percentage of achieving acquisition.
What is 20%?
When one firm buys another to make it a subsidiary.
What is an acquisition?
To get into a new market faster.
What is faster market entry?
The percentage of M&As that clearly fail.
What is 20%
Companies competing to buy the same firm. Can cause large debt.
What are bidding wars?
This is a special type of acquisition in which the target firm does not solicit the acquiring firm’s bid. It is unfriendly and hostile.
What is a takeover?
This can broaden market dependency.
What is reshaping competitive scope?
Getting too big and hard to manage.
What are diseconomies of scale?
Selling off parts of the business that don't fit with the company's main goal.
What is downscoping?
The decades when M&A strategies became prominent in the U.S.
What are the 1980s & 90s?
These acquisitions are often more successful.
What is related acquisition?
Borrowing too much money to buy a company.
What is acquisition debt?
Amazon acquired this company.
What is Whole Foods?
A company we have named that has acquired another company.
What is Disney?
What is Microsoft?
What is Amazon?
Name the three types of acquisitions.
What is vertical, horizontal, and related?
Carefully checking the other company before buying.
What is due diligence?
Buying all the company's stock to take it private.
What is a leveraged buyout (LBO)?
Name every person in the group. First and last.
Who is Audra Dew, Kaitlyn Williamson, Brooklyn Barger, Emma Franklin, Hagar Amin.