Mergers, Acquisitions, and Corporate Restructurings - Mid-Term Exam

According to Chapter 1, in which year did U.S. M&A dollar volume peak during the strong 2003-2007 period?

What made Vodafone's 1999 takeover of Mannesmann historically significant from a German corporate perspective?

A merger between an Italian eyeglass manufacturer (Luxottica) and the U.S. retailers that sell its products is best classified as what type of merger?

According to the Mergerstat methodology described in the chapter, how is enterprise value calculated?

The 1986 combination of Burroughs and Sperry to form Unisys is best described as a:

A contingent payment structure in which part of the acquisition price is tied to the future performance of the acquired business is called:

Which of the following companies is cited in the chapter as a 'new-economy' conglomerate?

According to Table 1.5, which firm ranked first as a U.S. financial advisor to M&A deals in 2016?

In the M&A negotiation process, a document prepared by the buyer (with possible seller input) that sets forth the major terms of the deal and may or may not be binding is called a:

Risk arbitrageurs in M&A transactions:

A leveraged buyout (LBO) is best characterized by:

In a forward triangular (forward subsidiary) merger:

A key advantage of a reverse triangular merger over a forward triangular merger is that:

Under Delaware appraisal procedure as described in the chapter, dissenting shareholders have how long to file suit after the merger becomes effective?

Boone and Mulherin's research on takeover procedures in the 1990s found that, compared with privately negotiated transactions, auctions:

Confidentiality agreements (NDAs) between potential merger partners typically include a standstill provision that:

Which of the following is a key difference between a reverse merger and a traditional IPO?

Under typical NYSE/NASDAQ rules for SPACs, what percentage of the funds raised in the SPAC's IPO is placed in an independently overseen trust account?

SPAC founders typically receive compensation in the form of:

How many major merger waves are identified in U.S. history in Chapter 2?

Harford's research on 35 industry waves from 1981-2000 concluded that, in addition to economic, regulatory, and technological shocks, a key necessary condition for a wave to take hold is:

A holdback provision in a merger agreement typically:

Under Delaware corporate law, what ownership threshold enables a corporation to undertake a short-form merger without a shareholder vote?

Prior to the 2001 Siliconix decision, all freezeout bids in Delaware were governed by what standard?

In a stock-for-stock transaction, a floating exchange ratio means that:

On an inflation-adjusted basis, the strongest year for U.S. M&A activity during the modern era was 2015, not 2000.

Vodafone's 1999 takeover of Mannesmann was an unsolicited, hostile bid, not a friendly negotiated transaction.

According to the Mergerstat methodology, enterprise value equals the base equity price plus the value of the target's debt and preferred stock, plus its cash on hand.

In a forward triangular merger, the acquirer subsidiary ceases to exist; the target is the surviving entity.

Reverse mergers typically take between two and three months to complete, much faster than a traditional IPO.

Vodafone was unsurprised when Mannesmann acquired Orange PLC, since Vodafone had expected Mannesmann to become a direct competitor in mobile telephony.

Leveraged buyouts were primarily a U.S. phenomenon during the 1980s before becoming international in scope.

One potential tax benefit of an asset deal for the buyer is the ability to obtain an asset basis step-up, increasing future depreciation deductions.

Risk arbitrageurs always earn a profit when they purchase target shares after a public deal announcement.

In 2016, 99% of Monsanto shareholders who voted approved the merger with Bayer.

On an inflation-adjusted basis, Europe's all-time peak in M&A activity occurred in 1999, even though the European market hit a nominal peak in 2006.

In SPAC structures, the typical no-vote threshold means that more than 50% of shareholders must vote against a deal for it to be blocked.

Europe's M&A business shrank dramatically in 2009 and 2010 due to the U.S. Great Recession and the European sovereign debt problems.

Most mergers and acquisitions are negotiated in a hostile, unsolicited environment.

Jenkinson and Sousa found that investors who approved SPAC acquisitions despite negative market signals suffered substantial negative returns in the months following the deals.