What are the factors used in determining the price paid for mergers and acquisitions?© BrainMass Inc. brainmass.com March 4, 2021, 7:50 pm ad1c9bdddf
There are several methods which are used to value target firms. The common methods are the discounted cash flow approach and the market multiple method. The discounted cash flow approach to valuing a business involves the application of capital budgeting procedures to an entire firm rather than to a single project whereby proforma statements that forecast the incremental free cash flows expected to result from the merger and discount rate are require. ...
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