Question
Considering all of the below, recommend and justify a price for this deal. This is not easy to do. Put yourself in the shoes of
Considering all of the below, recommend and justify a price for this deal. This is not easy to do. Put yourself in the shoes of the Robertson managers. Who wants it more? The buyer-Monmouth? The seller-Robertson? Who has the strongest negotiating position? Use case facts to guide you.
Recent closing price $44: Influenced by news of a possible deal.
| Summary map | $10.00 | $20.00 | $30.00 | $40.00 | $50.00 | $60.00 |
| FREE CASH FLOW MODEL | $75.55 | |||||
| REVENUE MARKET MULTIPLE | ||||||
| EBITDA MARKET MULTIPLE | $41.20 | |||||
| EARNINGS MARKET MULTIPLE | $30.42 | |||||
| BOOK VALUE MARKET MULTIPLE | ||||||
| CURRENT MARKET PRICE | $23-32 | |||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
It appears that the provided information is related to financial metrics and valuation multiples for a potential deal between Monmouth the buyer and R...
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Step: 2
Step: 3
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Auditing a risk based approach to conducting a quality audit
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
9th edition
9781133939160, 1133939155, 1133939163, 978-1133939153
