61 Questions
What is a common question that shareholders ask before any strategic operation?
Why not?
What is a key factor in determining the success of an offensive business strategy?
Adaptation to tech developments
What does neutralizing competitors contribute to in business strategy?
Creation of barriers to entry
In the context of strategic operations, what does 'cash-out' typically refer to?
Selling off assets
Why is achieving the critical size important in business strategy?
To reach economies of scale
What does defensive business strategy aim to protect against?
Market downturns
What does 'IPO' stand for?
Initial Public Offering
What stage in a company's lifecycle is represented by 'Seed' capital?
Birth
What does 'LBO' stand for in the context of private equity?
Leveraged Buyout
According to the image, which of the following best describes the market conditions in Europe for 'big LBOs'?
Uncertain
Based on the graph, what is the trend for the amount of capital to invest in non-listed companies globally?
Increasing
What is cited as the reason for the high proportion of extreme valuation multiples in Q3 2023?
Increase in transactions at multiples < 7x EBITDA
Who announced the intention to delete 1,850 posts, most of them in Finland, in the smartphones division inherited from Nokia?
How much did Google spend on the depreciation of the asset related to the removal of 1,850 posts?
$950 million
Who acquired Motorola's cell phone branch for $12.5 billion before selling it to Lenovo for $2.9 billion?
Why did Google make this decision resulting in a huge loss when selling Motorola's cell phone branch to Lenovo?
To acquire more patents
What was the main reason behind Google's intention to acquire patents related to smartphones back in 2011?
Protection against legal actions by phone manufacturers
Who founded the American conglomerate General Electric in 1892?
Thomas Edison
In a merger, what happens to the shareholders of the absorbed company?
They become shareholders of the acquiring company.
What is the primary concern when evaluating a potential merger?
Determining the new ownership percentages of the merged company.
In a joint venture, what happens to the original companies?
They continue to operate independently alongside the new joint venture company.
What is the primary concern when evaluating a potential joint venture?
Determining the new ownership percentages of the joint venture company.
In a merger, how many new entities are created?
0
In a joint venture, how many new entities are created?
1
What is the main advantage of external growth through horizontal integration?
Achieving economies of scale
Which type of external growth is considered the riskiest?
Vertical integration
What was Microsoft's primary motivation for acquiring Nokia's mobile phone division in 2013?
To enter the mobile phone hardware market
Which of the following is NOT a potential advantage of external growth through acquisition?
Increasing competition in the market
What is the primary challenge associated with post-merger integration, according to the survey mentioned?
Harmonizing corporate cultures
Which type of external growth involves acquiring companies that produce complementary products or services?
Vertical integration
What is the primary reason for pursuing external growth through conglomerate integration?
To diversify into new, unrelated industries
Which of the following is a potential disadvantage of external growth through acquisition?
Integrating different corporate cultures
Which of the following best describes the market conditions for 'big LBOs' in Europe according to the information provided?
The market conditions are favorable for big LBOs in Europe.
What is the primary reason cited for the high proportion of extreme valuation multiples in Q3 2023?
Strong increase in transactions at multiples less than 7x EBITDA.
What is the trend for the amount of capital available for investment in non-listed companies globally, based on the graph?
The amount of capital is increasing.
What does the term 'LBO' stand for in the context of private equity?
Leveraged Buyout
Which stage in a company's lifecycle is represented by 'Seed' capital?
Birth
What does the term 'IPO' stand for?
Initial Public Offering
What is the primary focus of the SKEMA PARIS 2024 M&A, Restructuring & L.B.O. course?
Valuation, structuring, and financing of controlling-equity transactions
What does 'L.B.O.' stand for in the context of the course description?
Leveraged Buyout
What aspect of business firm evaluation does the course provide the building blocks for understanding?
Activity assessment in mergers and acquisitions
In what type of growth does the course NOT focus on through acquisition?
Diversification
Which of the following best describes the purpose of the SKEMA PARIS 2024 M&A, Restructuring & L.B.O. course?
Providing background on controlling-equity transactions
What is the primary factor that influences the valuation of a company, according to the text?
The company's intrinsic characteristics
Which of the following is not listed as a potential shareholder strategy in the text?
Hostile takeover
What is the key point emphasized regarding strategy in the text?
Aligning the business strategy with the shareholder strategy
Which of the following is not a factor that should guide the thought process in valuation?
Discounted Cash Flow (DCF) analysis
What does the text suggest about the suitability of using a single valuation method for all situations?
Different valuation methods should be used for different contexts
What is a key consideration when evaluating a potential joint venture?
The alignment between business and shareholder strategies
What is the main difference between Acquisition and Merger in terms of shareholders?
Shareholders from the acquired company become shareholders of the acquiring company in a Merger, but not in an Acquisition.
Why is valuating Company B important before an acquisition?
To estimate the potential value of Company A after the acquisition.
What happens to original shareholders A and B in an Acquisition after the process is completed?
They are both shareholders of the newly formed entity.
In a Joint Venture, what is a common reason for creating this form of business combination?
To share risks and resources while maintaining independence.
Why might there be no point in valuating Company A if the payment for acquisition is in cash?
The value of Company A would not impact the acquisition price.
What is the primary reason for considering the value of entities in business combinations?
To evaluate the potential worth of entities involved in the combination.
What percentage of General Electric's total turnover comes from financial services?
Up to 33%
What did General Electric announce in April 2015 regarding its financial subsidiary, GE Capital?
The sale of $26.5 billion worth of real estate assets
How much time did General Electric initially give itself to exit the banking sector and sell its financial activities?
Two years
What additional sale did General Electric announce just two weeks after the initial $23 billion real estate asset sale?
The sale of $74 billion worth of trade receivables
Which company was the expected buyer of the $74 billion trade receivables portfolio from General Electric?
Wells Fargo
What did General Electric announce in October 2017 regarding its downsizing operation?
The separation of $20 billion worth of activities
Learn about various aspects of industrial finance and capital markets including IPOs, growth capital, venture capital, private equity, start-up funding, acquisitions, and market conditions in Europe. Explore topics like pre-IPO, IPO, turnaround capital, R&D funding, and more.
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