target firm's standalone value is best defined by which of the following statements:
A) What a business would be worth as part of another firm
B) What a business would be worth as a going concern following a takeover bid
C) What a business would be worth as a going concern in the absence of a takeover bid
D) What the target is worth after the closing date following a takeover
E) None of the above

Question

Quizplus · Accepted Answer

Standalone value refers to the value of a business as a going concern in the absence of a takeover bid. Option A refers to the value of a business as a part of another firm, which is not standalone. Option B refers to the value of a business as a going concern following a takeover bid, which is not applicable to standalone value. Option D refers to the value of the target after the closing date following a takeover, which may or may not be the same as standalone value, depending on the terms of the transaction. Therefore, option C is the best choice for defining standalone value.

Target Firm's Standalone Value Is Best Defined by Which of the Following