By the end of this chapter, you should be able to:
• Describe at least three situations that would make a merger attractive.
• List and explain the five key elements in the search and screening process.
• Describe the five critical variables for measuring the financial impact of a merger.
• Explain the impact on earnings per share of a potential merger.
• Explain the impact on the price-earnings ratio of a potential merger.
• List two valid and two invalid motives for pursuing a merger.
• Evaluate the significance of an acquisition on a firm’s future performance.
The Benefits of Changing Perspective ...