What are the two questions that an acquirer must answer?

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What are the two questions that an acquirer must answer?

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What are the two questions that an acquirer must answer?

Explanation & AnswerSolution by a verified expert

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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