CFA Practice Question

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CFA Practice Question

Based on past empirical results, the characteristics of M&A deals that create value for acquirers are:

I. The seller is strong.
II. The transaction premiums are relatively low.
III. The number of bidders is high.
IV. The initial market reaction is favorable.
Correct Answer: II and IV

Correct statements: I - The buyer is strong. III - The number of bidders is low.

User Contributed Comments 2

User Comment
ehc0791 III is opposite of explaination
quanttrader create value by minimizing bid price
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