An acquisition is one of the fastest ways for globe business to enhance their reach across the world. Buying a local business can have its advantages, because setting up ones own operations in a new country may take time. It might also prove to be more expensive. However, international acquisitions are more complex than domestic acquisitions because the legal and business environments are different. Assuming that foreign acquisitions of business is permitted, fundamental issues such …
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showed last 75 words of 1007 total
…two banks operated in. Conclusion The simulation has illustrated the importance of evaluating potential acquisition targets on their strategic merit, before carrying out a detailed financial analysis. As we experienced in this simulation, discounting future cash flows is an essential tool in evaluating the gain from an acquisition. Accurately interpreting macroeconomic indicators and financial data, and correlating that to the impact on the cash flows of each of the target bank was the real challenge.