Case Analysis: An American steel company's revenue has gone down 10% in the last two years. The company is considering buying a competitor that has 20% market share. You already have 40% of the market share. Identify why you're losing revenue. Given the fixed costs, profits, and revenues of the second company, determine how much you would be willing to buy it for. Would you buy it if the firm had zero profits?
Analyst: Round 1