Without Effective Due Diligence, The

question 83

Multiple Choice

Without effective due diligence, the:

• A) acquiring firm is likely to overpay for an acquisition.
• B) firm may miss its opportunity to buy a well-matched company.
• C) acquisition may deteriorate into a hostile takeover, reducing the value-creating potential of the action.
• D) firm may be unable to act quickly and decisively in purchasing the target firm.

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Definitions:

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Specialists in psychology who focus on how evolution has shaped the mind and behavior over millennia.