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jonny [76]
3 years ago
12

Explanation: In 2012, Hewlett-Packard wrote off 9 billion USD of the 11 billion USD it paid for Autonomy, a software company tha

t it purchased one year earlier. After the purchase was completed, HP realized that the Autonomy accounting statements were not accurate. This resulted in a nearly 80 percent drop in the value of Autonomy once the accounting irregularities were corrected.
Difficulty: 2 Medium
Topic: Acquisitions and Mergers
Learning Objective: 06-01 The reasons for the failure of many diversification efforts.
Bloom's: Analyze
AACSB: Analytical Thinking
Accessibility:
Mathematics
1 answer:
strojnjashka [21]3 years ago
4 0

<u>Answer:</u>

<u>False</u>

<u>Step-by-step explanation:</u>

A successful merger is one that sees two different companies come together as one company <u>under one central management. </u>

However, this was not the case with Hewlett-Packard and Autonomy merger in 2011, this resulted in a series of lawsuits seeking for damages.

This case stress the importance of proper auditing of accounts before a merger is done.

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