How Do You Determine The Purchase Price For The Target Company In An

1.	How Do You Determine The Purchase Price For The Target Company In An Acquisition?
Answer» You use the same Valuation METHODOLOGIES we already discussed. If the seller is a public COMPANY, you would pay more attention to the premium paid over the current SHARE price to make sure it’s “sufficient” (generally in the 15-30% range) to win shareholder approval.For private sellers, more WEIGHT is PLACED on the traditional methodologies. You use the same Valuation methodologies we already discussed. If the seller is a public company, you would pay more attention to the premium paid over the current share price to make sure it’s “sufficient” (generally in the 15-30% range) to win shareholder approval.For private sellers, more weight is placed on the traditional methodologies.

How Do You Determine The Purchase Price For The Target Company In An Acquisition?

Answer»

You use the same Valuation METHODOLOGIES we already discussed. If the seller is a public COMPANY, you would pay more attention to the premium paid over the current SHARE price to make sure it’s “sufficient” (generally in the 15-30% range) to win shareholder approval.For private sellers, more WEIGHT is PLACED on the traditional methodologies.

You use the same Valuation methodologies we already discussed. If the seller is a public company, you would pay more attention to the premium paid over the current share price to make sure it’s “sufficient” (generally in the 15-30% range) to win shareholder approval.For private sellers, more weight is placed on the traditional methodologies.

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