merger is a special type of capital budgeting decision explain
Answers
A company decides one important Capital budgeting through merger. ... After they settle on an initial non-disclosure agreement on merger, both companies share their financials with each other. The acquiring company and target company measures their performances in the past, present
and expects the future outcome.
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Answer:
Explanation:
"Merger as one capital budgeting:
Whenever we talk about merger and acquisition, then the target company or the acquiring company try to analyse each other resources by using the capital budgeting pattern.
This is to understand the areas of benefits and loss and whether the merger is going to be beneficial or not. Some of the common patterns followed include:
Checking the balance sheet
Financial flow statement
Cash Flow Statement"