A merger represents the fusion of once company by another, whereas an acquisition is the purchase of some portion of one company by another. There are three major tools for valuing a target company, they are:
Market value – comparing similar businesses and deriving a value from that.
Investment or income value – identify the future economic benefits to be generated by an entity and to compare them with the required rate of return.
Asset value – value of all the assets minus the liabilities.
At Sage Forensic Accounting, we have the expertise and experience to assist these cases.