The company you work for has been growing very slowly and has decided to increase its growth
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Question:
The company you work for has been growing very slowly and has decided to increase its growth by acquiring another company. You are in charge of negotiating the deal.
The target business (seller) has EBITDA of $3 million and the price is $25 million which you believe is too high. The seller says their price is based on the future potential of the business which after all, is what buyers buy - future cash flows!Your bank will only lend $18 million.
Present your argument to the seller (who will be role-played by the professor) on how to negotiate this acquisition.
Related Book For
Accounting concepts and applications
ISBN: 978-0538745482
11th Edition
Authors: Albrecht Stice, Stice Swain
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