In determining the initial offer price, the acquiring company must decide how much of anticipated synergy it is willing to share with the target firm's shareholders.

Question

Quizplus · Accepted Answer

In determining the initial offer price, the acquiring company takes into account the anticipated synergy that will result from the acquisition. The company then decides how much of this synergy it is willing to share with the target firm's shareholders, which will ultimately determine the initial offer price.

In Determining the Initial Offer Price, the Acquiring Company Must