If the acquirer were to pay the target firm shareholders the maximum estimated offer price it would be ceding all of the net synergy created by combining the two firms to the target's shareholders.

Question

Quizplus · Accepted Answer

When the acquirer pays the target firm shareholders the maximum estimated offer price, it essentially transfers all the benefits or net synergies expected from the merger or acquisition to the target's shareholders, leaving no additional value or synergy gains for itself.

If the Acquirer Were to Pay the Target Firm Shareholders