What Is Valuation For Merger?

Before a successful merger between two companies, each of the involved parties draft a valuation report for merger. The said report, following the valuation rules for merger, analyzes the company to be acquired through price-earnings and enterprise value-sales ratios. There are two valuation methods for mergers and acquisition that evaluators follow: Relative and Direct.

Documents Required For Merger Valuation

1. Latest financial statements of the target company
2. Present and past detailed financial reports that include debts and liabilities of the company
3. Business and financial plan and framework of the target company
4. Process Of Merger Valuation
5. The asking price is analyzed to be reasonable and justified
6. Examination of debts and liabilities of the target company
7. Examination and cross-checking of financial statements
8. Reviewing the present value and future cash flow of the target company
9. Reviewing the past and future financial plans of the company


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