What are the two questions that an acquirer must answer?
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What are the two questions that an acquirer must answer? |
Answer and Explanation
Explanation
Following are the two questions that must be answered by the acquirer during a merger analysis are-
What would the target company be worth after the merger? This should take into ac...
Explanation
Following are the two questions that must be answered by the acquirer during a merger analysis are-
What would the target company be worth after the merger? This should take into account the post-merger synergies and tax benefits.
How much should the acquiring company offer for the target company? This defines the offer price and structure for the merger.
Verified Answer
Following are the two questions that must be answered by the acquirer during a merger analysis are-
What would the target company be worth after the merger?
How much should the acquiring company offer for the target company?
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