Darryl Laws

 For these nine questions, I will use one-sample t-tests to determine whether the level of agreement or disagreement differs significantly from zero, which represents a “no opinion” response.

I developed my original set of questions based on an extensive comprehensive literature review of books, journal articles and previous surveys on the motives for mergers and acquisitions as well as practices used in valuing acquisitions. During the second trimester of Ann Feyerherm’s class I pre-tested a preliminary version of my survey questions by sending it to five (5) M&A professions, (one M&A Lawyer, two private equity fund managers and an acquisitive company CEO). 

Self-Administered Questionnaire. My survey questionnaire will include five areas of inquiry; first area involves background data on the number and average size of the acquisitions (Q1 - Q2). The second group of questions concerns motives for making decisions to enter into mergers and acquisition transaction (Q3 - Q8). The third area of inquiry about M&A structures and who benefits (Q12 – Q25). The fourth area examines is methods used to value publicly-traded and private closely held companies. 

Secondly, in constructing my survey instrument questions I intend it to  be focused on asking closed-end questions to lessen the subjectivity involved with classifying responses to open-ended questions. 

Survey Questionnaire.

1.     My company was involved in ___ M&As during the period January 1, 2019 and December 31, 2019. (Please check only one.)

1 - 3

4 - 7

8 - 10

above 10

2.      The following choice most closely describes the average asset size of the companies we acquired during the last 2 years. (Please check only one.)

Less than $500 million

$500 million - $1.5 billion

$1.6 billion - $5 billion

Over $5 billion

3. Provided below are some of the reasons that are offered for acquiring another company. Which of these motives best explain your firm’s acquisitions in the last two years?  (If you check more than one choice, please rank them, with 1 being the most important reason.)

In making M&A decisions, our primary motive(s) was (were) to:

CEO’s exaggerated self-confidence.

  CEO and staff remuneration (stock options, bonus).

 CEO uses excess free cash on the balance sheet.

diversify product, sales channel and or , markets and competitiveness.

realize a profit gain from breakup value of the acquired company.

Private equity fund manager or CEO (buyer) is a risk taker.

supply chain needs.

4.     Was the merger or acquisition justifiable economically?

Yes

No

If the answer to question #4 is “No,” please skip to question #6. If the answer is “Yes,” please answer #5 and skip #6.

Darryl Laws