Which one of the following is not one of the steps in the M&A model building process?
A) Valuing the acquirer and the target firms as standalone businesses
B) Valuing the target and acquiring firms including synergy
C) Determining the initial offer price for the target firm
D) Establishing search criteria for the potential target firm
E) Determining the combined firm's ability to finance the transaction.

Question

Quizplus · Accepted Answer

The steps in the M&A model building process are: 
1) Establishing search criteria for the potential target firm 
2) Valuing the target and acquiring firms including synergy 
3) Valuing the acquirer and the target firms as standalone businesses 
4) Determining the combined firm's ability to finance the transaction 
5) Determining the initial offer price for the target firm. Therefore, determining the initial offer price for the target firm is one of the steps in the M&A model building process, but establishing search criteria for the potential target firm is not.

Which One of the Following Is Not One of the Steps