Listen to a Business English Dialogue About Purchase acquisition
Mary: Hi Louis, do you know what a purchase acquisition is in business?
Louis: Hey Mary, yes, it’s when one company buys another and the purchase price is higher than the fair market value of the acquired company’s assets.
Mary: That’s right, and the excess amount paid is recorded as goodwill on the acquiring company’s balance sheet.
Louis: Exactly, it represents the value of intangible assets such as brand reputation or customer relationships.
Mary: Right, and it’s important for the acquiring company to accurately assess the value of the target company’s assets and liabilities.
Louis: Absolutely, as it can impact the financial health and performance of the combined entity post-acquisition.
Mary: Agreed, it’s a significant event in the business world and requires careful consideration and analysis.
Louis: Definitely, and it often involves negotiations and due diligence to ensure a successful outcome.
Mary: Yes, both parties need to understand the terms and implications of the acquisition thoroughly.
Louis: Absolutely, it’s a complex process that can have long-term effects on both companies involved.
Mary: True, thanks for the insights, Louis.
Louis: No problem, Mary. Always happy to discuss finance topics with you.