Developing capital investment guidelines for acquisitions.
Financial managers are now being asked to evaluate new investment opportunities, such as acquisitions. To do a thorough evaluation, however, it is important to have a plan of action to follow. Strategies such as establishing a framework for evaluating acquisitions based on strategic compatibility with the existing organization, establishing suitable risk-adjusted discount rates for assessing investments, and selecting the proper type of capital allocation method are all necessary steps to ensure a successful acquisition.
D002201:Capital Expenditures / Q000592:standards; D003657:Decision Making; D005069:Evaluation Studies as Topic; D005376:Financial Management / Q000379:methods*; D005377:Financial Management, Hospital / Q000379:methods*; D006268:Health Facilities / Q000191:economics*; D006273:Health Facility Merger / Q000191:economics*; D007449:Investments / Q000592:standards*; D010934:Planning Techniques; D012306:Risk; D014481:United States