A takeover is a business deal wherein one company takes control of another company against the wishes of the target company’s management. Takeovers can be hostile or friendly.
Hostile takeovers are takeovers that are not supported by the target company’s management. The acquirer may use a variety of tactics to take control of the target company, such as making a tender offer, buying shares on the open market, or using a proxy fight.
Friendly takeovers are takeovers that are supported by the target company’s management. The acquirer may negotiate with the target company’s management to agree on the terms of the takeover.
Here are some multiple choice questions (MCQs) on takeovers in M&A:
- Which of the following is a takeover that is not supported by the target company’s management?
- Hostile takeover
- Friendly takeover
- Both hostile and friendly takeover
- None of the above
- Answer: Hostile takeover
- Which of the following is a takeover that is supported by the target company’s management?
- Hostile takeover
- Friendly takeover
- Both hostile and friendly takeover
- None of the above
- Answer: Friendly takeover
- Which of the following is a tactic that can be used to take control of a target company in a hostile takeover?
- Tender offer
- Buying shares on the open market
- Proxy fight
- All of the above
- None of the above
- Answer: All of the above
Answers:
- Hostile takeover
- Friendly takeover
- All of the above
Here are some additional points about takeovers in M&A:
- Takeovers can be a risky and expensive way for companies to grow.
- There are many different factors that companies will consider when considering a takeover, such as the strategic objectives of the takeover, the financial resources of the acquiring company, and the regulatory environment.
- The different types of takeovers can have different implications for the companies involved, such as the impact on the employees of the companies involved, the impact on the customers of the companies involved, and the impact on the environment.