Homework answers / question archive / A local hospital offered to buy APT for $5,000, and the offer was refused

A local hospital offered to buy APT for $5,000, and the offer was refused

Economics

Share With

A local hospital offered to buy APT for $5,000, and the offer was refused. However, many observers now perceive that APT is “in play” and may be sold if the right offer comes along.

a. In successful transactions, purchasers have typically paid 10 times current profits. How much would APT be worth to a buyer from outside the industry?

b. Would you expect that BPT would be willing to pay more or less than an outside buyer?

c. What is the most BPT would be willing to pay for APT?