FIN 679 Pace University Almarai Merger and Acquisition Discussion

Complete an environment scan and Internet search to determine how investment bankers look at comparable acquisitions to determine prices for a target company in a merger and/or acquisition. Consider your chosen target company and create a one-page executive summary document that includes the following elements:

• Explain the various guidance and/or pricing benchmarks you found regarding a reasonable price to pay for acquisitions of publicly traded firms comparable to your target company.
• Explain the process you would use to calculate the merger premium for your target company. Provide a rationale for why the merger premium should be computed using the share price 30 days before the initial announcement of the acquisition.
• Explain how the discounted cash flow (DCF) analysis and the net present value (NPV) calculation will be useful for the acquisition of your target company.