What is meant by purchase price in Mergers and Acquisitions?



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In Acquisition analysis ,,,one column was there for purchase price ,u said it means at what the company is sold at :what exactly it means the company sold at value ??? means the company is very much existing then what it means taking purchase price of what it is sold at ?

2 Answer(s)


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in acquisition analysis, one entity is compared to another entity from the same industry which was sold recently and that company's data is used as one of the benchmarks for comparison to arrive at the value of the entity.

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Lets say you want to sell a company in the retail industry and want to find out what is the right price. Then you will make an acquisition analysis of what price other retail companies have been sold for in the last 2-3 years. The average of these prices will give you a rough idea of what price your company could be valued at. Is that clear?