Firms That Spent Billions on M&A Are Dumping Assets

Firms That Spent Billions on M&A Are Dumping Assets

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Interactive Video

Business

University

Hard

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The video discusses the rise in M&A volumes and the divestments of unsuccessful acquisitions, using Alibaba as an example. It highlights the cautionary tales from past M&A deals made during boom times, emphasizing the importance of thorough diligence. The current M&A environment is more cautious due to higher interest rates. Examples of recent M&A deals, such as Just Eat's sale of Grubhub and Teledoc's acquisition of Livongo, illustrate the challenges companies face. Investors now prioritize profit over growth, leading to more thoughtful deal-making.

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2 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

In what ways are companies being more thoughtful about deals in the current environment?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What examples of companies facing challenges after mergers are provided in the text?

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