Tuesday, 3 November 2015

Reasons for Valuation


Reasons for Valuation

Reasons for valuation may be offer price determination an offer price acceptance;

1.    Offer Price
First reason for valuation may be offer price determination by the acquirer. It is very important that acquirer must offer an appropriate or reasonable price to acquire Target Company.

2.    Offer Acceptance
Second reason for valuation may be offer price acceptance by the target company. Director & shareholder should accept reasonable price, and such price can only be determined by the valuation.