The merger of the two firms, computer software with a very fast-growing non-overlapping products makes great strategic sense, but is difficult to assess and accounting problems. How can a company to pay $ 225 million to acquire another company with low current earnings, and which promises to make an immediate $ 150 million one-time charge to earnings to be followed by a five-year $ 65 million of amortization of intangible assets? "Hide
by William E. Fruhan Source: Harvard Business School 16 pages. Publication Date: August 30, 1994. Prod. #: 295028-PDF-ENG
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