Which of the following may be used as acquisition vehicles?
A. Partnership
B. Limited liability corporation
Corporate shell
D. ESOP
E. All of the above
Which of the following should be considered important components of the deal structuring process?
A. Legal structure of the acquiring and selling entities
B. Post closing organization
C. Tax status of the transaction
D. What is being purchased, i.e., stock or assets
E. All of the above
Which of the following are examples of intangible assets that may have value to the acquiring company?
A. Patents
B. Trade names
Customer lists and relationships
D. Covenants not to compete
E. All of the above
All of the following are true for market based valuation methods except for which of the following?
Assumes that markets are efficient such that current values reflect all the information currently known about the business
B. Current values represent what a willing buyer and seller are willing to pay for a business in the absence of full information
C. Market based methods are always superior to discounted cash flow techniques
D. Include comparable company and recent transactions methods
E. Include the tangible book value approach