M&A Q&A
The merger between Exxon and Mobil is an example of - (correct answer)Horizontal
merger
In risk arbitrage the following is true: - (correct answer)a and b
a) Investors may expect the bidder's stock price to fall
b) Investors may the target's stock price to rise
LBOs are - (correct answer)a and b
a) also called private-going transactions
b) Financed primarily with debt
A letter of intent - (correct answer)Sets for more detailed terming than a term sheet
In a freeze-out: - (correct answer)Minority shareholders cannot hold up a merger
With a SPAC, bidding shareholders are quite familiar with the target to be acquired
when they purchase the SPAC's shares in its IPO. - (correct answer)False
Private equity firms are frequent LBO dealmakers - (correct answer)True
Bidders use merger arbitrage as a way of lowering their takeover costs - (correct
answer)False
Research has shown that the following factors contribute to the origination of merger
waves - (correct answer)a, b, and c
a) Economic shocks
b) regulatory shocks
, c) Technological shocks
Which of the following companies can trace their origins to the first merger wave? -
(correct answer)a and b
Which of the following types of deals were common in the third merger? - (correct
answer)conglomerate
Which of the following factors contributed to the end of the third merger wave? - (correct
answer)a, b, and c
a) Antitrust enforcement
b) economic slowdown
c) stockmarket downturn
Which of the following merger waves were truly global - (correct answer)Fifth
Which of the following factors contributed to the end of the 5th merger wave? - (correct
answer)a and b
a) Stockmarket downturn
b) Economic slowdown
Antitakeover defence became increasingly sophisticated the following merger waves: -
(correct answer)Fourth
Investment bankers played a pivotal role in leading many of the deals that took place in
the fourth merger wave. - (correct answer)True
Roll-ups were not common in the 1990s but became more popular in the 200s - (correct
answer)False
The merger between Exxon and Mobil is an example of - (correct answer)Horizontal
merger
In risk arbitrage the following is true: - (correct answer)a and b
a) Investors may expect the bidder's stock price to fall
b) Investors may the target's stock price to rise
LBOs are - (correct answer)a and b
a) also called private-going transactions
b) Financed primarily with debt
A letter of intent - (correct answer)Sets for more detailed terming than a term sheet
In a freeze-out: - (correct answer)Minority shareholders cannot hold up a merger
With a SPAC, bidding shareholders are quite familiar with the target to be acquired
when they purchase the SPAC's shares in its IPO. - (correct answer)False
Private equity firms are frequent LBO dealmakers - (correct answer)True
Bidders use merger arbitrage as a way of lowering their takeover costs - (correct
answer)False
Research has shown that the following factors contribute to the origination of merger
waves - (correct answer)a, b, and c
a) Economic shocks
b) regulatory shocks
, c) Technological shocks
Which of the following companies can trace their origins to the first merger wave? -
(correct answer)a and b
Which of the following types of deals were common in the third merger? - (correct
answer)conglomerate
Which of the following factors contributed to the end of the third merger wave? - (correct
answer)a, b, and c
a) Antitrust enforcement
b) economic slowdown
c) stockmarket downturn
Which of the following merger waves were truly global - (correct answer)Fifth
Which of the following factors contributed to the end of the 5th merger wave? - (correct
answer)a and b
a) Stockmarket downturn
b) Economic slowdown
Antitakeover defence became increasingly sophisticated the following merger waves: -
(correct answer)Fourth
Investment bankers played a pivotal role in leading many of the deals that took place in
the fourth merger wave. - (correct answer)True
Roll-ups were not common in the 1990s but became more popular in the 200s - (correct
answer)False
