Aspects of Acme Acquisition Approach Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Introduction

ACME should use a technical approach to acquire a company and manage its resources. This strategy involves analysis of the past behavior of exchange rates to identify the pattern and generate a forecast (Picasso et al., 2019). Making a chart of the patterns makes it possible to figure out what will happen. In addition, this method uses data from positioning surveys, trade rules based on moving averages that look for trends, and the customer flow of Forex dealers (Picasso et al., 2019). Due to the fluctuations of countries’ exchange rates, using the history of the rates becomes the most appropriate option. Therefore, a technical approach will enable ACME to understand the previous performance of the country regarding exchange rates and decide.

The Principles of Valuation for Financial Assets and Securities

The first principle is that the current value of the predicted cash flows determines the value of any financial asset. In most cases, a company’s value is based on how much money it will make in the future (Tastulekova et al., 2018). This means the company’s past earnings before the valuation date. Using this principle, one can use the existing financial asset of the organization to be valued to determine its worth (Tastulekova et al., 2018). As a result, ACME will use it to estimate the value of financial securities like stocks and bonds.

The second principle is that value is influenced by the transferability of future cash flow. The company’s value will depend on how easy it is for a potential buyer to take over its cash flows (Tastulekova et al., 2018). Most valuable businesses run without the owner being in charge. If a business owner has a lot of power over how services are delivered, how sales grow, and how customer relationships are kept up, then the owner will keep the goodwill but not the business. Therefore, this kind of individual goodwill has little or no market value, and it is hard to be given to someone else.

The third principle is that the value is influenced by liquidity. The approach is based on the theory of demand and supply (Tastulekova et al., 2018). If there are a lot of possible buyers in the market but only a few good acquisition targets, valuation multiples will rise. In both open market and notional valuation situations, the value of a business interest increases when it is easier to purchase and sell. To get the best price, owners of a business need to bring the best possible buyers to the table. Thus, an organization is considered valuable when it can run its daily operations.

The Best Country as a Site for an Acquisition

Based on the popularity of the pound in the foreign exchange market, I would recommend the UK as the best country for acquisition. It has minimal price volatility and a strong market in the ACME sector. The sterling pound, the oldest actively traded currency on the foreign exchange market, has a long and illustrious history (Djemo et al., 2021). The fact that London is one of the most important financial centers in the world further contributes to the city’s widespread appeal. Therefore, it would be a good decision for ACME to consider acquiring a company that operates in the UK. The country provides a conducive environment for ACME to function effectively.

References

Djemo, C. R. T., Eita, J. H., & Mwamba, J. W. M. (2021). Review of Development Finance, 11(2), 58-70.

Picasso, A., Merello, S., Ma, Y., Oneto, L., & Cambria, E. (2019). Expert Systems with Applications, 135, 60-70.

Tastulekova, A. B., Satova, R. K., & Shalbolova, U. Z. (2018). European Research Studies, 21(4), 875-886.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2023, June 5). Aspects of Acme Acquisition Approach. https://ivypanda.com/essays/aspects-of-acme-acquisition-approach/

Work Cited

"Aspects of Acme Acquisition Approach." IvyPanda, 5 June 2023, ivypanda.com/essays/aspects-of-acme-acquisition-approach/.

References

IvyPanda. (2023) 'Aspects of Acme Acquisition Approach'. 5 June.

References

IvyPanda. 2023. "Aspects of Acme Acquisition Approach." June 5, 2023. https://ivypanda.com/essays/aspects-of-acme-acquisition-approach/.

1. IvyPanda. "Aspects of Acme Acquisition Approach." June 5, 2023. https://ivypanda.com/essays/aspects-of-acme-acquisition-approach/.


Bibliography


IvyPanda. "Aspects of Acme Acquisition Approach." June 5, 2023. https://ivypanda.com/essays/aspects-of-acme-acquisition-approach/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1