M&A Financing

What are the differences (stock, risk, economic, etc.) between an all-cash and all-stock transaction?What are the pros and cons of each?

Can you cite an example of either an all-stock or all-cash merger/acquisition?

How about more complex transactions -- can we think of examples?

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M&A Successes and Failures

Identify a merger/acquisition that has been completed within the past 10 years. What has been reported or suggested as the basis of the merger? What is your assessment regarding degree of success? To what do you attribute the success or failure?

Conglomeration, Then and Now

Conglomerates (unrelated businesses in one corporate structure) were, as noted in the Lecture Notes, viewed very favorably by investors in the late 1960s and 1970s. They are currently penalized for their conglomerate status.

Two questions: why might this situation occur, and how would you test the "current penalty" conclusion?

Do you have any intuition about industries that might be consolidating in the near future? What are the drivers?