Question

In April 2017, PetSmart agreed to make the largest e-commerce acquisition in history to date, putting...

In April 2017, PetSmart agreed to make the largest e-commerce acquisition in history to date, putting a deal in place to snatch up fast-growing pet food and product site Chewy. com for $3.35 billion. The acquisition premium for this particular deal can be calculated as the amount by which the price PetSmart offered for Chewy.com exceeded the

Multiple Choice

  • amount paid as a down payment for Chewy.com that was to be held in escrow until closing.

  • difference between the amount that was offered for Chewy.com and the amount that was held in escrow to complete the deal.

  • preacquisition market value of Chewy.com.

  • fair market value of similar companies in the same geographic locale as Chewy.com.

  • comparable value of similar companies to Chewy.com within the same market.

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Answer : OPTION C

preacquisition market value of Chewy.com.

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