Opportunities for synergies between the two companies

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Alpha Industries is considering acquiring Foxtrot Flooring. Foxtrot is worth $20 million to its current owners under its existing operational methods. Due to some opportunities for synergies between the two companies, Alpha believes that Foxtrot is worth $25 million as part of Alpha Industries. What do you predict for a sale price of Foxtrot?

a. Less than $20 million or Alpha will not buy
b. More than $25 million or Foxtrot will not sell
c. Something between $20 and $25 million
d. The different valuations make a sale very unlikely

Reference no: EM131046401

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