MERGERS AND ACQUISITIONS

Posted: August 29th, 2013

It is prudent that you have sought professional assistance in assessing whether the lucratively of Target Ltd, which is a potential takeover target. This is done through assessing the company’s value. The textbook value of the firm is the current discounted value of the entire future cash flows. The main objective of any investor is to reap interest from the capital invested. With this regard, the more cash being produced by the firm determines the worth of the company. This provides the basis for calculating the Discounted Free Cash Flow of the Firm (DFCFF) Model.