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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › AggroChem June 2010 Afm
Mr john, i would like to ask you another question, like why we need to deduct the value of co from the bsop model with value of co derived from the free cash flow model in order to get the maximum price paid by aggrochem??
The value using the BSOP model is giving the total value of the combined business (including LeverChem). Subtracting the current value of AggroChem (before taking over LeverChem) gives the maximum to pay for LeverChem.
