FIN679: advanced corporate finance
Complete an environment scan and Internet search to determine how
investment bankers look at comparable acquisitions to determine prices
for a target company in a merger and/or acquisition. Consider your
chosen target company and create a one-page executive summary document
that includes the following elements:
Explain the various
guidance and/or pricing benchmarks you found regarding a reasonable
price to pay for acquisitions of publicly traded firms comparable to
your target company.
Explain the process you would use to
calculate the merger premium for your target company. Provide a
rationale for why the merger premium should be computed using the share
price 30 days before the initial announcement of the acquisition.
how the discounted cash flow (DCF) analysis and the net present value
(NPV) calculation will be useful for the acquisition of your target
Attach your executive summary document to your initial post and submit to the forum.