链典4矮降贸多大 高级商务英语阅读 Supplementary Exercises for Chapter 13 M&A:Companies Shopped-Now They've Dropped Questions on the text: 1.Why did those companies that financed mergers and acquisition through borrowed money fare worse than other companies? 2.What impact did the bankruptcy of Eron have on the fate of the companies undertaking M&A? 3.What is the author's attitude towards the spree of M&A in the 1990s? Il.Read the following text and choose the best sentence from 1 to 6 below to fill in each of the gaps in the text. Why should companies choose to merge?For the first time in history,acquisitions have surpassed IPOs not only in dollar value,but in number completed.For many companies,the erratic nature of the IPO market is far too risky.1)_ For the buyer,with the market changing so rapidly,product development has become a luxury that is not always a viable option.2)Buyers are more than willing to pay premium prices to gain market entry for a product that extends or diversifies their product line.Acquisitions can also expand customer bases,providing a more solid overall corporate business base. One of the greatest challenges for startup companies is having capital when you need it.While an IPO initially may seem to generate large amounts of cash,the founders,who have often mortgaged all they have to get off the ground,cannot count on an IPO for providing personal capital resources. 3)Of the 724 technology companies that went public in 1992 or later and remained independent,58 percent were trading at less than their IPO price six years later.With an acquisition,however,part of the negotiation can include at least partial liquidity at the time of transfer. 第1页共3页高级商务英语阅读 Supplementary Exercises for Chapter 13 M & A: Companies Shopped – Now They’ve Dropped I. Questions on the text: 1. Why did those companies that financed mergers and acquisition through borrowed money fare worse than other companies? 2. What impact did the bankruptcy of Eron have on the fate of the companies undertaking M&A? 3. What is the author’s attitude towards the spree of M&A in the 1990s? II. Read the following text and choose the best sentence from 1 to 6 below to fill in each of the gaps in the text. Why should companies choose to merge? For the first time in history, acquisitions have surpassed IPOs not only in dollar value, but in number completed. For many companies, the erratic nature of the IPO market is far too risky. 1) ______ For the buyer, with the market changing so rapidly, product development has become a luxury that is not always a viable option. 2) ______ Buyers are more than willing to pay premium prices to gain market entry for a product that extends or diversifies their product line. Acquisitions can also expand customer bases, providing a more solid overall corporate business base. One of the greatest challenges for startup companies is having capital when you need it. While an IPO initially may seem to generate large amounts of cash, the founders, who have often mortgaged all they have to get off the ground, cannot count on an IPO for providing personal capital resources. 3) ______ Of the 724 technology companies that went public in 1992 or later and remained independent, 58 percent were trading at less than their IPO price six years later. With an acquisition, however, part of the negotiation can include at least partial liquidity at the time of transfer. 第 1 页 共 3 页