Why could growth through a series of bolt-on acquisitions create more value than growth through a single

Question:

Why could growth through a series of bolt-on acquisitions create more value than growth through a single large acquisition? (Consider premium paid and synergies created for each individual transaction.)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Valuation Measuring and managing the values of companies

ISBN: ?978-0470424704

5th edition

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

See More Books

Question Posted: Aug 12, 2015 02:17 AM

See More Questions

Through a series of tests on pipe flow, H. Darcy derived an equation for the friction loss in pipe flow as in which f is a dimensionless coefficient that depends on (a) the average velocity u of the...
1. Normalization works through a series of stages called normal forms. Typically processed. a. 2 . 3 4 d. 5 stages are . 2. Some very specialized applications may require normalization beyond the a....
Seawater containing 3.50 wt% salt passes through a series of 10 evaporators. Roughly equal quantities of water are vaporized in each of the 10 units and then condensed and combined to obtain a...
(b) (i) A long single mode optical fiber has an attenuation of 0.40 dBkm when operating at a wavelength of 1.55 m. The fiber core diameter is 6 pm and the laser source bandwidth is 500 MHz. Determine...
For the data set in Try It Yourself 2, find the percentile that corresponds to $26,000, which is the data entry 26. Data set in Try It Yourself 2 a. Order the data. b. Determine the number of data...
You are the manager of a firm that sells a commodity in a market that resembles perfect competition, and your cost function is C(Q) = Q + 2Q2. Unfortunately, due to production lags, you must make...
* identify connections between the enquiryaction framework and the theories of change introduced earlier in the book; and
The income statement for Salt Creek Golf Club for the month ending July 31 shows Service Revenue $17,800, Salaries and Wages Expense $9,600, Maintenance and Repairs Expense $2,500, and Net Income...
Melvin Dwight owns a small catering business called M . D ' s Catering. At the beginning of the current month, the business had the following assets: cash $ 2 , 5 0 0 ; food invent ory $ 5 0 0 ;...
According to the nonprofit group Zero Population Growth, 78% of the U.S. population now lives in urban areas. Scientists at Princeton University and the University of Wisconsin report that about 15%...
For which type of company is additional growth likely to create more value: a high-ROIC company in a mature market or a low-ROIC company in a fast-growing market? Give reasons for your answer.
Identify and discuss an example where growth in market share through a price war created long-term value for a company.
A dipole with charges {q and separation 2a is located a distance x from a point charge +Q,oriented as shown in Fig. 20.32. Find expressions for the magnitude of (a) the net torque(b) the net force on...
(AVR) PR=IAVR=1R = (power dissipated by a resistor) (28.12) R
As a manager and an entrepreneur, you will face a new challenge - business venture structured on the theory of the firm. You are opening a restaurant in your selected town in the State of NY (please...
Install on ubuntu , please provide a screenshot for each step 1)How to install base64 on ubuntu 2)What kind of analysis is performed by Cuckoo? How to install Cuckoo on ubuntu?
rt a letter to Rose McBride. Writing Plan - Refusal to a Request Rubric Buffer: Start with a neutral statement on which both reader and writer can agree, such as a compliment, appreciation, a quick...
FACTS: The Budvar Company sells parts to a foreign customer on December 1, Year 1, with payment of 20,000 crowns to be received on March 1, Year 2. Budvar enters into a forward contract (with a...
List three things that can affect the relationship between two variables.
The population of Detroit, Michigan, decreased from 1,027,974 in 1990 to 688,701 in 2013 (Source: U.S. Census Bureau). Find the average rate of change in the population of Detroit, Michigan, over the...
Indicate whether the following matters would require (1) an adjusting entry, (2) a reclassification entry, or (3) a footnote disclosure. Give reasons for your answers. a. An uncollectible account...
In Integrative Case 10.1, we projected financial statements for Starbucks for Years +1 through +5. In this portion of the Starbucks Integrative Case, we use the projected financial statements from...
In Integrative Case 10.1, we projected financial statements for Starbucks for Years +1 through +5. In this portion of the Starbucks Integrative Case, we use the projected financial statements from...
Explain required income. What does required income represent? How is required income conceptually analogous to interest expense?
Phantom Consulting Inc. is a small computer consulting business. The company is organized as a corporation and provides consulting services, computer system installations, and custom program...
Sam owns a 25% in Spade, LLC. In 2021, Spade reports $100,000 or ordinary income. What is Sams qualified business income (QBI) deduction? answer is 5,000 but please show how to get it
crane Inc. common chairs currently sell for $30 each. The firms management believes that it's share should really sell for $54 each. If the firm just paid an annual dividend of two dollars per share...

Why could growth through a series of bolt-on acquisitions create more value than growth through a single

Question:

Step by Step Answer:

Bolton acquisitions tend to create more synergies because ...View the full answer

Valuation Measuring and managing the values of companies

Students also viewed these Corporate Finance questions