Payback period is the real case in this kind of investments. This is particularly because the pay-back period will define the time period required by the company to make good its investments. This calculation …show more content…
These executives have substantial vested interest in the deal and this aspect can never be …show more content…
Compatibility
It is very important to understand if the company’s are compatible to each other. This is very crucial as it will define the various ground rules for the company’s.
Cultural Integration
It is important to analyze as to how does the culture, work force and the operating procedure of the 2 company’s align. This is because the 2 companies will only not have financial inclusion but also have work culture being integrated.
10. Streamlining of the process.
The company being acquired should be n such a manner that the process should streamline the company. Since the supplier is the largest for the company, streamlining may not be an issue. But since it also has other clients, it will have a huge impact on the competition and its renewal of contracts, as competitors would be averse to any contracts.
11. Purchase Price
All going good, it is important to have the correct price quoted for the company. If EEC ends up paying more than the correct price, then it would not be a good financial decision, and contrary if we make a proposal for low valuation, then the deal may fall through.
This price should also keep in mind and beware of inflated prices due to the news of the acquisition.
12. Payment