Evans, Frank C.
March 2002
Financial Executive;Mar/Apr2002, Vol. 18 Issue 2, p63
Academic Journal
The article presents advice to chief financial officers (CFOs) on how to determine an acquisition target's proper valuation. CFOs need to be able to distinguish between a firm's standalone value and its value to the acquirer. When the latter exceeds the former, synergies exist and the CFO has to quantify these. Rates of return are crucial, both their calculation and how those of comparable firms compare. Valuation itself can be arrived at via the income, market, or asset approach. All three are described.


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