Estimate the bid and offer prices

Reference no: EM132967197

Question: -In a meeting with management, the financial consultant emphasized:

"IPO is a big and important decision. So we have to take extra care, especially in determining the initial price". Describe the "cautionary steps" that management will take, and then why should people pay special attention to price? Give a hypothetical example of a company that "failed" in the IPO process. Explain the background to the decision, some financial information , and why it was considered a "failure" decision.

-"In most cases, the management of the target company tends to resist the intention of acquisition by another company". Why ?

-At the beginning of the acquisition process, both parties (acquirer and target) estimate the bid and offer prices. What is the basic approach in determining these prices? Describe the answer

Reference no: EM132967197

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