Phlanders Flange Company Essay Example | Topics and Well Written Essays - 250 words

Phlanders Flange Company - Essay Example Our major aim is diversification of the market. Therefore, I feel that we should not pay extra premiums on the shares if we value the firm as a stand-alone entity. To reduce the premium value of the share, it would be advisable if we pay the company by cash. When we contrast the strength of our company and that Framingham Company, it appears that when we value the company independently, it does not give us the operating synergy we desire. Instead, the company can give us a financial synergy because it will increase our capacity to borrow. Before we acquire this company, I would propose that we take a moment to revisit our goals for acquisition (Bowles, 2012). Although the Framingham may appear as a good target, we should use our initial goals to determine whether it is the right target. Secondly, we need to do a comprehensive valuing of the company. It will help us to determine its future performance in the market (Bowles, 2012). Lastly, I propose that we investigate the information further to ascertain if the figures are correct. If the company meets our requirements, then we can go ahead and acquire