Fin 461 Exam 1 Miami University 70 Questions and
Answers Latest
1. Why does M&A tend to (1) Cyclical patterns with strong correlation between S&P performance
occur in waves? and the amount of M&A activity.
(2) Companies can use their stock to make acquisitions when their stock
price is high.
2. 4 Factors that contribute (1) Liquidity; most recent factor in M&A wave
to M&A waves (2) Disruptive Technology; 1990's
(3) Regulation/Deregulation; 1980's
(4) 'Shocks'; oil prices, recent trends with SPACs/ESG
3. Motives for why firms (1) Synergies
engage in M&A transac- (2) Diversification
tions
4. Main M&A players and 1. Identify strategic alternatives
their roles 2. Value maximization, 3.speed of execution
4. Certainty of completion
5. Horizontal Integration driven by economies of scale & scope
6. Vertical Integration motive is greater control over production and distribution
7. Backward Integration upstream; raw material supplies, manufacturing/production
(Vertical Integration)
8. Forward Integration downstream; distribution, end user
(Vertical Integration)
9. Conglomeration driven by desire to diversify
10. Who wins in an M&A the target firm (targets shareholders make better returns)
transaction?
11.
, Fin 461 Exam 1 Miami University 70 Questions and
Answers Latest
Who loses in an M&A the acquiring firm; returns are negative however, positive returns for
transaction? acquirer are situational and include the target, size, and consideration
12. What factors DO matter (1) Financing structure
in creating value for the (2) Target company status
acquirer? (3) Earnings growth
(4) Foreign vs domestic acquisitions
13. What factors DO NOT (1) EPS impact
matter in creating value (2) Transaction size
for the acquirer? (3) Profitability & volatility
(4) Credit rating impact
(5) Industry
14. The functions performed (1) M&A advisory
by investment banks (2) Underwriting
(3) Sales & Trading
(4) Research
(5) Syndicate
15. How do investment ditterent fees for advising and providing fairness opinion
banks get paid for their
work?
16. The role played by in- (1) Identify strategic alternatives
vestment banks in M&A (2) Value maximization
transactions (3) Speed of execution
(4) Certainty of completion
17. League tables list of investment banks that ranks them in terms of fees generated.
Tracks activities of investment banks like M&A deals and valuation of
banks
Answers Latest
1. Why does M&A tend to (1) Cyclical patterns with strong correlation between S&P performance
occur in waves? and the amount of M&A activity.
(2) Companies can use their stock to make acquisitions when their stock
price is high.
2. 4 Factors that contribute (1) Liquidity; most recent factor in M&A wave
to M&A waves (2) Disruptive Technology; 1990's
(3) Regulation/Deregulation; 1980's
(4) 'Shocks'; oil prices, recent trends with SPACs/ESG
3. Motives for why firms (1) Synergies
engage in M&A transac- (2) Diversification
tions
4. Main M&A players and 1. Identify strategic alternatives
their roles 2. Value maximization, 3.speed of execution
4. Certainty of completion
5. Horizontal Integration driven by economies of scale & scope
6. Vertical Integration motive is greater control over production and distribution
7. Backward Integration upstream; raw material supplies, manufacturing/production
(Vertical Integration)
8. Forward Integration downstream; distribution, end user
(Vertical Integration)
9. Conglomeration driven by desire to diversify
10. Who wins in an M&A the target firm (targets shareholders make better returns)
transaction?
11.
, Fin 461 Exam 1 Miami University 70 Questions and
Answers Latest
Who loses in an M&A the acquiring firm; returns are negative however, positive returns for
transaction? acquirer are situational and include the target, size, and consideration
12. What factors DO matter (1) Financing structure
in creating value for the (2) Target company status
acquirer? (3) Earnings growth
(4) Foreign vs domestic acquisitions
13. What factors DO NOT (1) EPS impact
matter in creating value (2) Transaction size
for the acquirer? (3) Profitability & volatility
(4) Credit rating impact
(5) Industry
14. The functions performed (1) M&A advisory
by investment banks (2) Underwriting
(3) Sales & Trading
(4) Research
(5) Syndicate
15. How do investment ditterent fees for advising and providing fairness opinion
banks get paid for their
work?
16. The role played by in- (1) Identify strategic alternatives
vestment banks in M&A (2) Value maximization
transactions (3) Speed of execution
(4) Certainty of completion
17. League tables list of investment banks that ranks them in terms of fees generated.
Tracks activities of investment banks like M&A deals and valuation of
banks
