What is the purpose of valuation in terms of mergers and acquisition?

Q: How do control issues affect mergers?

A: Merger refers to the process of combining two or more companies to form a new company. This is the…

Q: Explain research and development purchase in business acquisitions.

A: Research & Development is a process by which a business obtains new knowledge and uses it to…

Q: Is synergy a valid rationale for mergers?

A: Synergy: The definition of synergies is that the union of two company’s fallout in a product that is…

Q: What does it mean by "acquisitions versus alliance" when pertaining to diversifying and managing…

A: A company or a corporate entity or an organization can diversify and grow using different…

Q: What are the Criteria of “Creditable Acquisitions” Please describe!

A: There are many factors that determine if an acquisition is a creditable one or not and for which we…

Q: What is a typical merger premium paid in a merger or acquisition? What effect does this premium have…

A: A merger premium is usually paid over the purchasing corporation's pre-merger price. The premium is…

Q: What is the difference between an operating merger and a financial merger?

A: Introduction: A process or an arrangement in which two or more companies are merged to create one…

Q: In the context of Merger & Acquisition, What is the definition for Social Issues and why is it…

A: Mergers and acquisitions are business reorganization. Companies merge together to form a single…

Q: e the options for financing the acquisition of the franchisee's operatio

A: Offering both the flexibility and independence of owning a small business, as well as the support…

Q: goodwill or (gain on acquisition) arising on consolidation ace price?

A: Fair value of assets = P1,280,000  Less: Fair value of Liabilities = P716,000  Identifiable net…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: What is the difference between a merger and a corporate alliance?

A: Merger is the process of combining two or more companies with the purpose of forming a new company.…

Q: what are elements of a successful merger deal?

A: Merger means combination of two or more than two companies to merge into a new entity to earn more…

Q: In the context of Merger & Acquisition, What is the definition for Structure and why is it…

A: A mergers and acquisition structure is a binding agreement between the two parties, which specifies…

Q: What has been the likely effect of the Gramm-LeachBliley Act on financial consolidation?

A: The Gramm-Leach Bliley act is a act that has been enacted in order to explain the provisions of the…

Q: What role does the buy–sell agreement occupy in a business successionplan?

A: The role of the buy–sell agreement occupy in a business successionplan is given below as,

Q: What is financial merger?

A: Merger refers to the strategic alliance between the two companies to operate more efficiently with…

Q: What are the types of work performed, the overall areas of focus, and/or other relevant information…

A: The following types of works need to performed  1) sourcing the transaction 2) Appraising the deal…

Q: In your opinion, what is/are the problem/s with the Book Value per Share approach and the…

A: Book value per share is the ratio of dividend available for equity shareholders and number of…

Q: What are the different financial risks in business acquisition and combination?

A: Financial risk is the risk that the company has overpaid or has got more leverage than required or…

Q: What merger-related activities are undertaken byinvestment bankers?

A: The roles of the investment bank will differ depending on whether the bank is representing the…

Q: Discuss the underlying theories and empirical evidence on the value creation from horizontal…

A: A Horizontal Merger happens when organizations working in something very similar or comparable…

Q: The benefits from merger or acquisition

A: Merger and acquisition is a corporate strategy in which two or more companies combine to form a new…

Q: Distinguish between operating mergers and financial mergers.

A: Definition: Merger: A process or an agreement where two or more firms combine together to form one…

Q: What are the major types of divestitures? Whatmotivates firms to divest assets?

A: A divestiture or divestment is the disposal of the company’s assets or a through sale, exchange,…

Q: Discuss the pros and cons of diversification as a rationale for mergers.

A: Pros of diversification as a rationale for mergers are as follows: Economies of scale: Mergers of…

Q: Methodologies to assess risks and benefits associated of Mergers and Acquisitions

A: Mergers and acquisitions refer to two different concepts. Merger means the process in which two…

Q: What is the difference between a merger and a consolidation?

A: Merger : A merger can be characterized as the substantive and legislative joining of two or more…

Q: How are acquisition costs recorded in a merger?

A: Acquisition costs: These are the costs incurred in the process of acquisition.

Q: What has been the rationale for LVMH acquisitions?

A: LVMH refer to as the largest luxury goods conglomerate across the world. It is the best known for…

Q: What is the difference between statutory merger, staturory consolidation and statutory acquisition?

A: Merger, acquisition and consolidation are three forms of business reorganisation with other…

Q: What is operating merger?

A: Synergy allows two or more than two companies to combine their performance and value and either…

Q: What Is the difference between statutory merger, statutory consolidation and statutory acquisition?

A: The difference between statutory merger, statutory consolidation and statutory acquisition is…

Q: What important issues should management consider prior to a merger or acquisition? What are the…

A: Important issues that management should consider prior to merger or acquisition as shown below:…

Q: Which liabilities constitute debt within the context of firm's valuation during mergers and…

A: Mergers and Acquisition is the process by which a company consolidates or transfers the ownership of…

Q: What method is used to account for mergers?

A: Merger is when two companies are liquidated to form a joint new company.

Q: What is the NPV, IRR, and Payback period for the acquisition and what should Atlantic do?

A: NPV and IRR       year  Free cash flow PV factor PV 0 -260 1 -260 1 12.8 0.884956 11.32743 2…