here! I'm stuck on this problem. Need help. Thanks in advance!!! I think its a multiples valuation question. Laurel Inc. was interested in pursuing an acquisition of Hardy Co. The board of Laurel wanted to ensure that the offer Laurel's management was putting together was reasonable. In order to do so, an adviser was retained to do a fairness opinion, and this advisor collected data on the valuations of some of Hardy's direct competitors - Curly and Moe. These firms had market to book ratios of 1.5 and 2.0 and market to income ratios of 22 and 27. Hardy has a book value of $55 million on net income of $4.5 million. What would be a reasonable estimation of its value?
Hi There! I'm stuck on this problem. Need help. Thanks in advance!!! I think its a multiples valuation question.
Laurel Inc. was interested in pursuing an acquisition of Hardy Co. The board of Laurel wanted to ensure that the offer Laurel's management was putting together was reasonable. In order to do so, an adviser was retained to do a fairness opinion, and this advisor collected data on the valuations of some of Hardy's direct competitors - Curly and Moe. These firms had market to book ratios of 1.5 and 2.0 and market to income ratios of 22 and 27. Hardy has a book value of $55 million on net income of $4.5 million. What would be a reasonable estimation of its value?
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