CEVAP:

Negotiation in M&A activity refers to the process of bargaining between the acquiring firm and the target firm aimed at coming to an agreement over the terms, needs and aims of both parties. If the acquiring company’s intention is to continue with the management of the target company after the acquisition, the heart of the negotiation first will be the integration of business activities and management after the closing. Price will be the second theme of the negotiation if both parties have an agreement on the first theme. However, if the acquiring company’s intention is only to have the assets of the target company, then the focal point of the negotiation will be the price. We can say that the intention and approach of the acquirer sets the framework for the process of M&A.