- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Valuation
- Learning Module 25. Private Company Valuation
- Subject 6. Market Approach Methods of Private Company Valuation
CFA Practice Question
Which statement is true?
B. Acquisition premiums are typically smaller in strategic transactions than in financial transactions.
C. Acquisition premiums are typically similar in strategic transactions and in financial transactions.
A. Acquisition premiums are typically larger in strategic transactions than in financial transactions.
B. Acquisition premiums are typically smaller in strategic transactions than in financial transactions.
C. Acquisition premiums are typically similar in strategic transactions and in financial transactions.
Correct Answer: A
This is because of the expected synergies.
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