Hi,
I need some help in M&A valuation.
I am not sure how should I deal with below cases:
1) the target firm is not able to finance its own investment plans. The acquirer will have to finance such CAPEX if the deal will be successfully completed. Should I include this CAPEX in stand-alone valuation, other way?
2) Besides above CAPEX, the acquirer is planning other CAPEX (for further development) in the target company (this CAPEX is not related to the synergies). Should I include this CAPEX in stand-alone valuation, other way?
Thank you for your help.

Question

Hi,
I need some help in M&A valuation.
I am not sure how should I deal with below cases:
1) the target firm is not able to finance its own investment plans. The acquirer will have to finance such CAPEX if the deal will be successfully completed.  Should I include this CAPEX in stand-alone valuation, other way?
2) Besides above CAPEX, the acquirer is planning other CAPEX (for further development) in the target company (this CAPEX is not related to the synergies). Should I include this CAPEX in stand-alone valuation, other way?
Thank you for your help.