Minimum purchase price or initial offer price for a target is the target’s standalone value or market value.
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Cost savings are likely to be greatest when firms with dissimilar operations are consolidated.
Non-compliance with environmental laws, product liabilities, pending lawsuits, poor product quality, patents, poorly written or missing customer contracts, and high employee turnover are all considered destroyers of value.
A target firm's high employee turnover is often considered a destroyer of value.
The target firm's underutilized borrowing capacity is often considered a source of value.