Howard College Mergers and Acquisitions Discussion
Prior to beginning work on this discussion, read the Strategic Analysis for More Profitable Acquisition
Analyze business valuation techniques, and briefly discuss the role of financial analysis in the decision-making process for a merger and acquisition. In your post, explain which financial analysis techniques would assist a financial manager in developing a proposal for a mergers and acquisitions activity. Use the following questions to guide your explanation. Support your statements with evidence from your sources.
- What is the maximum price that should be paid for the target company?
- What are the principal areas of risk?
- What are the earnings, cash flow, and balance sheet implications of the acquisition?
- What is the best way of financing the acquisition?
