Mergers & Acquisitions Quiz
About This Quiz: Test your knowledge of Mergers & Acquisitions (M&A), one of the most important strategic tools in corporate finance. This quiz covers key concepts including types of M&A transactions, valuation methods, deal structures, regulatory considerations, and post-merger integration.
Answer each question and check your understanding as you go. When you’re ready, submit your complete quiz at the end.
Section 1: M&A Fundamentals
1. What is the primary difference between a merger and an acquisition?
2. What is a horizontal merger?
3. Which of the following is NOT a common motive for M&A activity?
Section 2: Valuation & Deal Structure
4. Which valuation method compares a target company to similar publicly traded companies?
5. What does “synergy” mean in the context of M&A?
6. In a leveraged buyout (LBO), how is the acquisition primarily financed?
Section 3: Due Diligence & Legal Considerations
7. What is the primary purpose of due diligence in M&A?
8. Which regulatory body reviews M&A transactions for antitrust concerns in the United States?
9. What is a “breakup fee” in M&A transactions?
Section 4: Post-Merger Integration
10. Which factor is often cited as the most common reason for M&A failure?
11. What is the “100-day plan” in post-merger integration?
12. Which of these is a key success factor in post-merger integration?
