Hurdle rate buffers and bargaining power in asset acquisition

Puntos clave

• Bargaining power significantly influences asset acquisition outcomes, especially with variations in hurdle rates.
• The study finds that 30% of decisions were impacted by differing financial metrics among stakeholders.
• Analysis of financial allocations illustrates how firms navigate negotiation tactics during asset acquisitions.
• Implications highlight the need for effective valuation strategies in optimizing asset purchase agreements.