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You work for a publicly traded company that is considering a bid for another firm.As part of this work, you have been tasked with valuing

You work for a publicly traded company that is considering a bid for another firm.As part of this work, you have been tasked with valuing this 'target' firm.The target firm is closely held by a single family; the firm is the only valuable asset that the family holds.What is the role of idiosyncratic risk in preparing an initial bid for the target firm?

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