Minimum purchase price or initial offer price for a target is the target's standalone value or market value.

Question

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The minimum purchase price or initial offer price for a target is typically the target's standalone value or market value. This is because the acquirer is not willing to pay more than the target's standalone value for the target, and the target's shareholders are not willing to sell the target for less than its market value.

Minimum Purchase Price or Initial Offer Price for a Target