Question

In: Finance

Can I get an example of a M&A proposal to calculate the value of a company...

Can I get an example of a M&A proposal to calculate the value of a company using the DCF model?

Solutions

Expert Solution

M&A is a merger and acquisition.merger and acquisition valuation module describe the background for M& A banking that most investment bankers will need to know particularly from the perspective of valuation.

There are variety of ways to value A company the valuation method includes:-

  • Discounted cash
  • Public comparables
  • Acquisition comparables
  • Merger analysis
  • Leveraged buyout
  • Other techniques

Each of theseincluding acquisition comparables is very important in investment package and is discussed in the module and marger analysis is also known as merger consequences analysis.

Reasons for pursuing M&A

M&A is a corporate strategy that may increase value for the acquired by creating an important value driver known as synergies(ways to increase profit / earning through an acquisition) among other reasons. Synergies chata rice from an M&A transaction for a variety of reasons:-

  • Increase and diversify sources of revenue by the acquisition of new and complementary product and service offerings(revenue synergies).
  • Increase production capacity through acquisition of workforce and facilities (operational synergies).
  • Increase market share and economies of scale(revenue synergies/ cost synergies).
  • Increase operational efficiency and expertise(operational synergies/cost synergies).
  • Reduction of financial risk and potentially lower borrowing cost(financial synergy)

The acquisition of another company may also be defensive with nature .for example a large company mein wish to ekvira small but growing company if the small company has a substantial competitive advantage over the large company, such as an important technology or patent, or superior product offering. This may protect the aquarium from serious competitive consequences, as the small company may overtime be able to grow on its own and eat into the large companies business.


Related Solutions

Can i get a statement of purpose example for a RFP proposal
Can i get a statement of purpose example for a RFP proposal
Can I get an example of a statement of Financial Performance or tutorial?
Can I get an example of a statement of Financial Performance or tutorial?
Java Programming: Can I get an example of a program that will allow 4 options? Example...
Java Programming: Can I get an example of a program that will allow 4 options? Example Output: Choose on of the options below: 1. Display all items in CSV file. (CSV file includes for example brand of phone, size, price) 2. Pick an item by linear searching 3. Pick an item by bineary searching 4. Quit Program
Can i get an example of PERT schedule and Activity On Node (AON) with at least...
Can i get an example of PERT schedule and Activity On Node (AON) with at least 6 activities for contract negotiation project.
Can I get an example of statistics used in the media (e.g., newspaper, television, commercials, or...
Can I get an example of statistics used in the media (e.g., newspaper, television, commercials, or radio). Briefly summarize the media article containing the statistics. Identify which information in the article is statistical.
-- I can calculate the formula mass but get confused with the various conversions between different...
-- I can calculate the formula mass but get confused with the various conversions between different types of units. I have the correct answers but I am trying to learn how to work through the problems to get the correct answer. 10) A sample of talc, Mg3Si4O10(OH)2, has a mass of 0.664 g. Calculate the number of mmoles of Mg3Si4O10(OH)2. 11) A sample of gypsum, CaSO4•2H2O, has a mass of 22 g. Calculate the number of moles of CaSO4•2H2O. 12)...
Educational psychology I am making pie chart about my personality, but can i get an example...
Educational psychology I am making pie chart about my personality, but can i get an example of pie chart. Here is example of statement that i have to fill in the blank. -   First identify affiliations and aspects of your self identity. Using Excel, smartart in Word or Powerpoint, drawing in Paint or by hand, create a pie chart that represents your positionality. See mine attached as an example. Next, fill in the blanks to the following: Because I am...
Scenario: I can get a new bond from a company with a 10yr maturity and and...
Scenario: I can get a new bond from a company with a 10yr maturity and and a 5% yield (for par value) or I can buy an existing bond (from the same company) with a 10yr maturity and a 4% yield... Would I pay the same, more, or less for the existing bond (compared to the new bond)... and what risk does this represent when investing in fixed income?
How can I calculate a test statistic and a p- value when is hypothetic and when...
How can I calculate a test statistic and a p- value when is hypothetic and when it is not?
How do I calculate the up-market Beta? Can you give me an example please? Can you...
How do I calculate the up-market Beta? Can you give me an example please? Can you give an examp;le of when it is was a good market timer and when it is a bad market timer
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT