41.P&G’s acquisition of Gillette reshaped its competitive scope by giving : 1413243
41.P&G’s acquisition of Gillette reshaped its competitive scope by giving P&G a stronger presence in some products for whom men are the target market.
42.The post-acquisition integration phase is less important for acquisition success than characteristics of the deal itself.
43.Research shows that in times of high or increasing stock prices, due diligence is relaxed and firms often overpay for acquistions and the long-run performance of the newly formed form suffers.
44.The reasons why a firm would overpay for a company that it acquires include inadequate due diligence.
45.Large or extraordinary debt is defined as overpaying for an acquired firm.
46.Junk bonds are now used more frequently to finance acquisitions primarily because of the belief that debt disciplines managers.
47.Bucyrus took on a significant amount of debt because of several acquisitions and subsequently had to file for bankruptcy.
48.Junk bonds are a financing option through which risky acquisitions are financed with debt that provides a large potential return to bondholders.
49.Synergy is created by the efficiencies derived from economies of scale and economies of scope and by sharing resources across the businesses in the merged firm.
50.Private synergies are unique to the acquired and acquiring firms and could not be developed by combining either firm’s assets with another company.