How to determine the valuation of an investment bank, Financial Management

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My company paid an extremely high price for the acquisition of another company; the price was recommended by the valuation of an investment bank. We now have financial crisis. Is there any way to make that bank legally responsible for this situation?

I would say no. The investment bank does a valuation according to the expected value of the flows the company could make and its risk. What an investment bank gives is a valuation and not a "price of valuation." The responsibility for the price lies with the company that realizes the offer.

 


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