Question

What are the most challenging aspects of merger and acquisition projects?

What are the most challenging aspects of merger and acquisition projects?

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Answer #1

The most challenging aspects of merger and acquisition project
1. Valuation of the target company including calculation of future cash flows , including synergy , predicting the combined share price, combined cost of capital are very challenging. Calculation of goodwill is challenging. for which the company has to pay more price .
2. The management of human resources becomes another important challenge. The training of manpower, the firing of certain employees and managing the different cultures of the merged company becomes a huge challenge.


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