[Solution Library] A minimum price to pay for an acquisition of this type is the target company base value plus 1/2 year of the forecast incremental operating profit
Question: A minimum price to pay for an acquisition of this type is the target company base value plus 1/2 year of the forecast incremental operating profit from after the merger. A maximum price to pay would be the base value plus 2 years’ worth of operating profits. Using the 30% probable value of Bairns and your incremental operating margin analysis, what would be a reasonable minimum price and maximum price to pay to purchase Bairns?
Deliverable: Word Document 