M&A and Private Equity

Question:

WaterMark Advisors (2017, May 15th). Why Do Acquirers Overpay For Targets? (online) Available at: https://watermarkadvisors.com/wire/why-do-acquirers-overpay-for-targets/ (Links to an external site.) (Accessed January 21 2020)

Trainer, D. (2016). ‘Why Companies Overpay For Acquisitions’, Forbes, July 21, Available at: https://www.forbes.com/sites/greatspeculations/2016/07/21/why-companies-overpay-for-acquisitions/#18d8548144c6 (Links to an external site.) (Accessed January 21 2020)

In the two articles linked above, the writers analyse the reasons acquirers often overpay for acquisitions.

Read the articles carefully and write a discussion contribution in which you critically analyse what drives these overvalued acquisitions and critically asses how purchase price influences the success of these deals and shareholder wealth.

After you do so, comment on at least 2 discussion posts by your fellow students.

Please write at least 500 words. You should not exceed 1,000 words. Please be sure to reference your sources in appropriate Harvard formatting and to provide substantive evidence of any claims that you make. Where appropriate, include personal anecdotes, statistics, and references to additional reading or materials. After you have posted your initial response, visit the forum again over the coming days to read the responses of your peers. You should respond to at least two other students by asking them to elaborate on a point, providing a counter-argument, suggesting a topic for debate, or referring back to the extended reading or video clips.