Currently I'm working in a Merger and Acquisition Class. Their is a group project where we are exploring a hypothetical acquisition between Linkedin and the Match Group. (Own Match.com, Tinder various dating web sites)

For my portion I am looking at the question:

Evaluate the acquirers financial and managerial capability to complete an acquisition. Identify affordability limits in terms of the maximum amount the acquirer should pay for an acquisition. Explain how this figure is determined

The textbook Describes the breakdown:

Financial resources are potentially available to the acquirer include those provided by internally generated cash flows in excess of normal operating requirements plus funds from equity and debt markets

In cases where the target firm is known, the potential financial pool includes funds provided by internal cash flow of the combined companies in excess of normal operating requirements, the capacity of the combined firms to issue equity or increased leverage, and proceeds from selling assets not required to execute the acquirers business plan.Financial theory suggests that in acquiring firm will always be able to attract sufficient funding for an acquisition if it can demonstrate that it can earn the cost of capital.

Then it describes senior management and the Risk they face when considering an acquisition:

Three basic types of risk confront senior management who are considering an acquisition -how these risk are perceived will determine how much of potential available resources management would be willing to commit to making an acquisition Operating risk -Address is the ability of the buyer to manage the acquired company (generally it's perceived to be higher for aminase in markets unrelated to the acquirers core business) Financial Risk -refers to the buyers willingness and ability to leverage a transaction as well as the willingness of shareholders to except dilution of near-term EPS -to retain a specific credit rating, the acquiring company must maintain certain levels of financial ratios, such as debt to total capital and interest coverage. -A firms incremental debt capacity can be approximated by comparing the relevant financial ratios to those comparable firms in the same industry that are rated by credit rating agencies. -The difference represents the amount the firm, in theory, could borrow without jeopardizing its current credit line rating. My question is, given the public financial information on Linkedin and the MatchGroup what financial figures would I want to evaluate to determine the amount Linkedin could offer currently offer to acquire.

I would consider the company's 10Q but but I want to know which numbers to consider.