When publicly traded company acquired operating assets of


When a publicly traded company acquired the operating assets of another company in a cash-for-assets deal, the overall purchase price had to be allocated among the assets. Due to time pressures, the company’s CFO decided to retain the company’s auditors to perform this asset allocation task. The company’s auditors are highly reputable and have substantial experience valuing the kinds of assets that were involved in the acquisition. The auditors submitted a written bid, and they submitted the lowest fee of all bidders who participated. Do you applaud the CFO’s efforts for getting all of this done on time and on budget? Explain?

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HR Management: When publicly traded company acquired operating assets of
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