1. Why is it often considered critical to integrate the target business quickly? Be specific.
2. Given the complexity of these two businesses, do you believe the acquisition of Gillette by P&G made sense? Explain your answer.
3. Why did P&G rely heavily on personnel in both companies to implement postclosing integration?
4. Why do you believe P&G was unable to retain most of Gillette’s top managers following the acquisition?
5. Researchers routinely employ abnormal financial returns around the announcement date of a merger or margin improvement subsequent to closing as ways for determining the success (or failure) of a takeover. What other factors do you believe should be considered in making this determination? Be specific.