Exam 2: History of Mergers

Investment bankers played a pivotal role in leading many of the deals that took place in the fourth merger wave.

Research has shown that the following factors contribute to the origination of merger waves:

Which of the following factors contributed to the end of the third merger wave?

In the 2000s, which of the following regions/nations exhibited a pattern of heightened M&A volume although the total level varied by the size of the economy?

Which of the following companies can trace their origins to the first merger wave?

The 1940s were a period of intense M&A activity.

Investment bankers played a prominent role in the first merger wave.

Antitakeover defense became increasingly sophisticated during the following merger waves:

The Inco-ESB deal was the first hostile takeover in the United States.

Roll-ups were not common in the 1990s but became more popular in the 2000s.

Which of the following types of deals were common in the third merger wave?

Answer: The United Technologies takeover of Otis Elevator is an example of a failed merger.

The first merger wave was significantly curtailed by the Sherman Antitrust Act.

Moeller, Schlingemann, and Stulz showed that the deals of the fifth merger wave destroyed significantly more value than those of the fourth merger wave.

Which of the following types of deals were common in the first merger wave?

Mitchell and Mulherin, in investigating the deals of the fourth merger wave found that deregulation played a prominent role but that not all industries respond to deregulation the same way with some reacting more quickly than others.

Which of the following merger waves were truly global?

LBOs became increasingly popular during the fourth merger wave.