ou recently hired a young MBA who is advising you thatyou should grow more...

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Accounting

ou recently hired a young MBA who is advising you thatyou should grow more aggressively and who is suggesting that youshould do so by acquiring other smaller companies. Your cookwareand tableware importing business has been quite successful, but youare not sure that this new employee’s plan to acquire a series ofcooking/kitchenware stores makes sense. What issues would you raisein discussing this proposal?

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It is a case of mergers and acquisitions The drivers of a mergeracquisition are 1 Synergies are the core objective Value of Firm AB Value of Firm A Value of Firm B The combined value of 2 firms is more than their individual value Synergy Value of Acquirer Stand Alone value of target Value of synergy Combined Value 2 See Answer

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In: Accountingou recently hired a young MBA who is advising you thatyou should grow more aggressively...ou recently hired a young MBA who is advising you thatyou should grow more aggressively and who is suggesting that youshould do so by acquiring other smaller companies. Your cookwareand tableware importing business has been quite successful, but youare not sure that this new employee’s plan to acquire a series ofcooking/kitchenware stores makes sense. What issues would you raisein discussing this proposal?