Both the Acquirer and Target Boards of Directors Have a Fiduciary

question 43

True/False

Both the acquirer and target boards of directors have a fiduciary responsibility to demand that the merger terms be renegotiated if the value of the offer made by the bidder changes materially relative to the value of the target's stock or if their has been any other material change in the target's operations.

---

Definitions:

Payback to the Customer

Refers to the benefits or rewards a company offers to its customers, often as a way to thank them for their loyalty or to encourage further business.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, expressed as a ratio or percentage.

Revenue Growth

An increase in the amount of money generated from the sales of goods or services over a given period, indicating a company's financial health and expansion capacity.

Life Cycle

The series of changes in the life of an organism or product, including its inception, growth, and eventual decline.