Sir what is bootstrapping and how can it be used to value the company post acquisition?
Ask the Tutor ACCA AFM
BOOTSTRAPPING
9y ago#1Bootstrapping is where the acquiring company has a higher PE ratio than the target company, but maintains its PE after the acquisition.
The valuation would be done the normal way with PE valuations - multiplying the new total earnings by the PE ratio.
Sign into reply to this topic.