Which of the Following Is the Most Common Reason That

question 20

Multiple Choice

Which of the following is the most common reason that M&As often fail to meet expectations?

• A) Overpayment
• B) Form of payment
• C) Large size of target firm
• D) Inadequate post-merger due diligence
• E) Poor post-merger communication

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Definitions:

Sales Forecast

A projected calculation of future sales, often based on historical sales data, market trends, and economic conditions.

Growth

An increase in the economic value of a company or economy, often measured by variables such as income, sales, or GDP.

Sales

The total amount of goods or services that are sold within a particular period of time.

Operating Budget

A detailed projection of all estimated income and expenses based on forecasted sales revenue during a given period, usually a fiscal year.