Download or read book Evaluating Companies for Mergers and Acquisitions written by and published by Emerald Group Publishing. This book was released on 2014-06-04 with total page 200 pages. Available in PDF, EPUB and Kindle. Book excerpt: This volume in the IBM series investigates how the evaluation of a target firm influence the outcome of mergers and acquisitions (M&As). Co-authored by international business expert Pervez Ghauri, it highlights the processes that evaluate potential acquisition targets, and how a proper evaluation can positively influence the M&A performance.

Download or read book Mergers Acquisitions And Business Valuation written by Ravindhar Vadapalli and published by Excel Books India. This book was released on 2007-11 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mergers, Acquisitions and Business Valuation is a practical guide to the methods of Business Valuation covering quoted and unquoted companies. This book will be invaluable to anyone engaged in a practical or academic investigation of company valuation and Due Diligence Process in Mergers and Acquisitions. This book covers American and Indian Corporate Cases. It is written keeping in view the requirements of MBA students, researchers and academicians as well as practitioners.

Download or read book Mergers Acquisitions a Real Option valuation approach of investment decision under uncertainty written by Marc Zajicek and published by diplom.de. This book was released on 2004-01-06 with total page 78 pages. Available in PDF, EPUB and Kindle. Book excerpt: Inhaltsangabe:Abstract: The objective of this dissertation is to examine the application of Real Options for the evaluation of companies with regard to acquisitions. There has been an intensive scientific discussion in the past years about the Real Options method for the evaluation of investments and mergers & acquisitions as in practice usually the management tries to capture future developments with static methods of capital budgeting. For example, future cash-flows are discounted with a fixed risk-adjusted discount rate. Therefore, the Real Options approach has been applied very rarely as it has the reputation of high complexity and poor practicability in daily business. However, the use of present values and capitalized values may produce pitfalls in acquisition decisions as strategic investment decisions might be characterized by a wide range of possibilities to react flexibly to a fast changing environment. In chapter 1, the term Mergers & Acquisitions (M&A) is defined and the motives as well as the relevance of M&A transactions for different branches are described in detail. Furthermore, the process and the different phases of a merger or an acquisition are explained. Chapter 2 presents traditional evaluation methods of static net present value, sensitivity analysis, Monte Carlo and decision tree. These classic methods are discussed and a comparison is drawn among these techniques in regard to practicability. At the end of this chapter, a evaluation is presented in regard to specific situations with the mayor parameter of uncertainty and flexibility for the application of these classic methods. The basic concept of option pricing is described in chapter 3. In addition, the Black-Scholes equation and the underlying assumptions are explained in detail in order to understand financial options, which are the basic for the Real Options approach. At the end of the chapter, an example of a call and put option is discussed in order to understand the functioning of options. Chapter 4 presents an introduction and definition of the Real Options method. Furthermore, the value drivers and the value creation due to the application of Real Options are discussed and analyzed in detail. After the discussion of the functioning of Real Options, a comparison of the analogy between financial Options and Real Options is done in order to possible differences. In this context, the limitations of the analogy of financial and Real Options are presented. Finally, [...]

Download or read book Premium Evaluation in Mergers and Acquisitions of Electricity Companies written by Aleksandr Sterkhov and published by . This book was released on 2020 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The purpose of this research is to build a model for estimating the relative premium in mergers and acquisitions involving electric power companies. This evaluation is based on four groups of factors: the company's operating and financial results, the country in which the company operates, the industry the company belongs to, and the debt market conjuncture.This paper is based on a comparative business valuation method. The empirical base of this research includes data on 6504 deals that have occurred throughout the world from 1997 to 2018. This data is sourced from the Zephyr database, which includes data on both public and non-public companies for which the amount paid in a deal is known, as well as the value of total assets.The results of this research demonstrates that this categorisation of industries, (achieved via a mathematical algorithm) corresponds almost identically to the existing industry structure of the electric power industry. The coefficient of determination of the final econometric model is more than 20 percent, which indicates a high-quality assessment. This is because the relative premium is predicted (and not the amount paid in the deal), which is in close correlation with the value of the company's assets.The scientific novelty of this paper consists in our clarifying of the conceptual apparatus (the relative premium term introduced in a deal), the selection and grouping of factors which affect the size of the relative premium, and the identification and quantifying of the influence of variables included in each group of factors. This article proposes the author's approach to the categorisation of countries and industries based on the equality of premium coefficients in the regression, as well as categorisation by groups of countries and industries with equal premiums.This composition outlines a methodology that may be used to predict the value of a business, as well as determining the value paid in a deal, in cases where such information is not available publicly. This will be of obvious interest to anyone involved in business or research in several fields. Further, as concerns further development of these results, various interesting features are highlighted which are beyond the scope of this research to investigate further. For example, the relative premium seems to be determined by variables related to the quality of the institutional environment. The correlation of political stability and premium value arises, providing fresh ground for future study.

Download or read book Mergers and Acquisitions written by Ernst & Young LLP and published by John Wiley & Sons. This book was released on 1994-03-31 with total page 368 pages. Available in PDF, EPUB and Kindle. Book excerpt: The economic climate, new regulations and developments both here and abroad have totally changed the face of today's mergers and acquisitions. Completely rewritten and updated, it examines realistic strategies and goals for the 1990s that must be addressed in order to achieve a successful acquisition program. Includes coverage of the post-acquisition process, chapters on restructuring financially troubled companies, and unique strategies that apply to niche acquisitions. It also features new material on international mergers, the pros and cons of partial buy-ins, cross-border alliances, financing options and covers issues (strategic, legal, financial and regulatory) that can affect a deal of any size.

Download or read book Controlling the Results of Mergers and Acquisitions Methods for Measuring the M A Success written by Charlotte Walz and published by GRIN Verlag. This book was released on 2005-12-11 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2004 in the subject Business economics - General, grade: 1,0, Heilbronn University of Applied Sciences, course: Spezielle BWL - M&A, language: English, abstract: Many companies pursue a growth strategy by executing acquisitions. But in recent years they have seen too many publications showing that M&A failure ratios exceed success ratios. In this paper it is examined which methods can be applied for measuring the M&A success and reasons, why these studies concluded in negative results, are given. For measuring the success of M&As, the definition of objectives, the company wants to achieve by acquiring, is essential. In general, the overall goal is to create shareholder value though each acquiring company has its own specific secondary goals. Within this paper these secondary goals are divided into the financial dimension (e.g. synergies), HR dimension (e.g. gaining key personnel) and market strategic dimension (e.g. gaining market share). Before measuring the M&A success, some general problems which affect all evaluation methods have to be considered. The first problem refers to the period of measurement. It is difficult to find the adequate period as it considerably differs amongst the various evaluation methods. The second problem refers to the comparison of measurement results. For a realistic view, the results should not only be observed before and after the transaction but as-if figures of the single entities, in case of not having merged, should be considered. The first method to measure M&A success is the objective evaluation model which can be subdivided into the annual accounts oriented method, the capital market oriented method and the event oriented method. The annual accounts method considers various ratios out of the external accounting system (e.g. RoE). It is rather a past-oriented method. The second method to measure M&A success is the subjective evaluation method which includes questionings of people involved in the M&A process (managers, employees, internal and external experts). This method is especially important for measuring the success of the integration process and, although not useful as an isolated assessment, it makes a valuable contribution to the evaluation of the M&A success. The various methods can lead to different results, therefore general statements about success or failure of M&A deals can only be made under reserve. Important aspects (e.g. distortion of study results due to large loss deals) were not considered. According to recent (more sophisticated) studies, M&As are able to generate value and growth under the right circumstances.

Download or read book Evaluation of Success of Mergers and Acquisitions Case Finnish Forest Companies written by Katja Antikainen and published by . This book was released on 2008 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: The objective of this study was to find out what factors affect the success of mergers, what kind of methods there are to measure the success, and what kind of methods are used in Finnish forest companies, and how systematic the measuring is. The success of two Finnish forest industry mergers was evaluated.A framework for interviews was made on the basis of literature concerning mergers and acquisitions, and this framework was the basis in acquiring a view of the Finnish forest industry on measuring the success of mergers. The success indicators introduced in literature are partly applied in the latter part of the study and the success of the mergers is evaluated.The most significant factors influencing mergers according to the interviewees were the consolidation of the entire industry and the company's own strategy. Measuring the success of the merger was considered to be problematic and there seemed to be no consistent practice. The numerical evaluation implies that both studied companies have reached economies of scale in total costs. According to the calculations the profitability of the firms has developed into favourable direction after the mergers and also shareholders have got benefits through increased dividends.

Download or read book Mergers and Acquisitions written by David R. King and published by Routledge. This book was released on 2018-10-30 with total page 158 pages. Available in PDF, EPUB and Kindle. Book excerpt: The process of identifying and evaluating a target firm, completing a deal after its negotiation and announcement, and then integrating a target firm after legal combination is a multi-year process with uncertain returns to acquiring firms. Research on mergers and acquisitions (M&As) is progressing rapidly yet it remains fragmented across multiple research perspectives that largely examine different acquisition phases separately and coincide with a focus on different research variables. As a result, research fragmentation means that a researcher in one area may be unaware of research from related areas that is likely relevant. This contributes to research silos with M&A research displaying different traditions, starting points, and assumptions. Mergers and Acquisitions: A Research Overview summarizes the frontier in M&A research and provides insights into where it can be expanded. It undertakes the needed integration and reconciliation of research in order to derive practical knowledge for managing acquisitions from beginning to end, providing a summary of what is known and its implications for future research. This concise overview reconciles and integrates the state of the art in our understanding of mergers and acquisitions, providing an essential first stopping point in the research journey of students and scholars working in this area.

Download or read book Impact of Business Evaluation Process on Mergers and Acquisitions Outcome written by Ibne Hassan and published by . This book was released on 2013 with total page 508 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Value in Due Diligence written by Ronald Gleich and published by Routledge. This book was released on 2017-11-22 with total page 273 pages. Available in PDF, EPUB and Kindle. Book excerpt: The recent financial crisis has thrown many of the mergers and acquisitions of recent years into sharp focus. Too many have failed to generate real value for shareholders and many others have only proved lukewarm successes. Although it is impossible to assess accurately the extent to which these failures may be the result of poor planning and execution, they have raised considerable questions about the process, breadth and effectiveness of traditional due diligence activities. Value in Due Diligence explores new applications for due diligence including areas such as corporate culture, social responsibility, and innovation. It also examines the due diligence process itself to draw out those elements that provide effective risk and opportunity management as opposed to simple compliance.

Download or read book Mergers Acquisitions written by Bruno Cassiman and published by Edward Elgar Publishing. This book was released on 2006-01-01 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The content of this book is based on the final report of a research project carried out by an international team of researchers for the European Commission's Directorate General for Research"--copyright p.

Download or read book Mergers and Acquisitions For Dummies written by Bill R. Snow and published by John Wiley & Sons. This book was released on 2011-05-09 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt: The easy way to make smart business transactions Are you a business owner, investor, venture capitalist, or member of a private equity firm looking to grow your business by getting involved in a merger with, or acquisition of, another company? Are you looking for a plain-English guide to how mergers and acquisitions can affect your investments? Look no further. Mergers & Acquisitions For Dummies explains the entire process step by step?from the different types of transactions and structures to raising funds and partnering. Plus, you'll get expert advice on identifying targets, business valuation, doing due diligence, closing the purchase agreement, and integrating new employees and new ways of doing business. Step-by-step techniques and real-world advice for making successful mergers and acquisitions Covers international laws and regulations How to take advantage of high-value deals Going beyond the case studies of other books, Mergers & Acquisitions For Dummies is your one-stop reference for making business growth a success.

Download or read book The Complete Guide to Mergers and Acquisitions written by Timothy J. Galpin and published by John Wiley & Sons. This book was released on 2010-12-23 with total page 289 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mergers and acquisitions (M&A) experts Tim Galpin and Mark Herndon present an updated and expanded guide to planning and managing the M&A process. This comprehensive book is unique in providing the tools to address both the human and operational sides of integration. Based on the authors' consulting experience with numerous Fortune 500 companies, this resource will help organizations capture deal synergies more quickly and effectively. Augmenting their step-by-step advice with helpful templates, checklists, graphs and tools, Galpin and Herndon provide sound guidance for successfully integrating different processes, organizations, and cultures. The authors also address pre-deal do’s and don’ts, people dynamics, common mistakes, communications strategies, and specific actions you can take to create measurable positive results throughout the integration process. The revised edition not only updates case studies and presents recent integration research, but it also adds new tools.

Download or read book A Comprehensive Guide to Mergers Acquisitions written by Yaakov Weber and published by Pearson Education. This book was released on 2014 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leverage today's most complete and practical framework for driving superior business value from mergers and acquisitions -- both domestic and international. A Comprehensive Guide to Mergers and Acquisitions Management focuses on critical success factors across every stage of the process, including planning, screening, negotiation, due diligence, transition management structures, post-merger integration, leadership and trust, cultural integration, HR practices, control, monitoring, and more. Authored by Yaakov Weber, an international expert in M&A management, strategic alliances, and strategic management, this book's uniquely interdisciplinary approach fully addresses both operational and cultural requirements, supporting participants in every role. Replete with recent examples and cases, it pays special attention to crucial strategic and behavioral linkages between pre- and post-merger stages, explaining why they are so important and how they can be managed to create maximum value. Throughout, Weber provides practical tools, tables, and figures that can help M&A implementers ensure best performance and achieve success where others have failed. As just one example, he provides proven instruments for analyzing cultural differences and the potential for synergy, and translating that potential into reality. For multiple audiences, including board members and top executives who must evaluate the strategic and financial issues associated with M&A; investment bankers, VCs, and other investors who must screen and select acquisitions; managers who must execute business combinations; consultants in strategy, HR, culture, and other areas; and faculty and students in executive education, MBA, and BA-level business programs.

Download or read book Success Factors of International Mergers and Acquisitions written by Carmen Sum and published by GRIN Verlag. This book was released on 2013-01-17 with total page 30 pages. Available in PDF, EPUB and Kindle. Book excerpt: Essay from the year 2010 in the subject Business economics - Business Management, Corporate Governance, grade: 1,0, University of Applied Sciences Ingolstadt, language: English, abstract: At the beginning of 2010 the United Nations Conference on Trade and Development (UNCTAD) reported a total volume of cross-border mergers and acquisitions (M&A) volume for 2009 of 239.9 billion US-dollars. Even if this sounds like a huge volume the global M&A market was considerably affected by the economic crisis and decreased by 66% compared to the volume of 2008 where we had a total volume of 706.5 billion US-dollars of cross-border sales (UNCTAD, 2010a). The following chart shows that international M&A’s play a significant role in todays economy. Beside that a quarterly survey conducted by Hewitt Associates showed up that 54% of European headquartered organizations evaluated already completed transactions as not as successful as they were intended to be and did not reach the initial financial and strategic objectives (Hewitt Associates, 2010). Why do companies still do international M&A’s even if it seems that they fail to reach their targets in so many cases? The target of this essay is to evaluate why M&A’s are still so important for businesses and to show up that the success of international M&A’s is dependent on more than the financial evaluation of the organisations involved. Therefore this essay provides some basics on international M&A’s including types of M&A’s, according processes and expected benefits. Based on that it evaluates the human side of M&A’s and how this influences the successful implementation.

Download or read book Winning at Mergers and Acquisitions written by Mark N. Clemente and published by Wiley. This book was released on 1998-03-23 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive new framework for winning at Mfrom up-front planning to postmerger integration The challenges of mergers and acquisitions can be daunting-but the opportunities and benefits they offer forward-thinking companies can be tremendous. Winning at Mergers and Acquisitions offers a critical new approach to strategic M&A based on the authors' pioneering concept of marketing due diligenceSM. Covering every stage of market-driven M&A planning and integration, this book shows how to look beyond the quick hit to focus on long-term growth rather than short-term cost-cutting. Featuring dozens of real-life case studies-including both failures and extraordinary successes-plus inside comments from leading M&A specialists, this book contains crucial guidance on: * Predeal planning-how to identify your strategic needs and pinpoint the merger candidate(s) that will help you meet them * Sizing up targets for acquisition-how to examine the essential marketing, sales, and product issues that will determine a good company "fit,".strategically and culturally * Revenue enhancement planning-how to identify ways to drive top-line growth and develop action plans to generate near- and long-term revenues * Filling the pipeline-how to prioritize and actualize the critical steps necessary to drive shareholder value * Developing communication programs-how to design and execute communication strategies to garner support for the merger by employees, customers, and other stakeholders * Building a comprehensive postmerger integration plan-how to align diverse corporate cultures, develop training and reward programs, and move beyond the turf wars and lack of productivity that hamper the success of mergers and acquisitions. Last year more than 7,000 mergers and acquisitions were completed, with a collective price tag estimated at more than $800 billion. And although they are known as highly effective means of achieving corporate growth and strategic advantage, these transactions are fraught with pitfalls: Statistics indicate that a third of these deals will fail and another third will not bear out the expectations of the merger partners. What can businesses looking to undertake strategic mergers and acquisitions do to ensure that they do not fall victim to confusion, multimillion-dollar losses, declining market share and profits, or any number of other negative results of failed transactions? The answers are in Winning at Mergers and Acquisitions, a pioneering step-by-step guide to growth-driven planning and swift, effective post-merger integration. Challenging the conventional emphasis on cost-reduction synergies, this book presents the authors' groundbreaking blueprint for mergers that yield strategic synergies and high returns in meeting long-term growth, increased market share, and revenue generation objectives. Mark Clemente and David Greenspan explore in detail the marketing, sales, and organizational issues that are vital aspects of successful M&A ventures. They take executives through the entire strategic M&A process-from setting objectives, to evaluating target companies, to aligning corporate cultures in an effort to ensure problem-free integration. They show how to maintain a sharp focus on the markets that will be reached by the merger-and they offer invaluable advice on charting a steady course through the often tumultuous period of integration, when organizational chaos can cause the merged company to lose momentum, market share, and the backing of customers, prospects, and shareholders. Winning at Mergers and Acquisitions is essential reading for CEOs, managers, deal makers, and others looking to capitalize on one of the most important methods of effecting corporate growth in business today-while staying focused on the people, product, and process issues that power that growth.

Download or read book Analysis and Evaluation of Success Factors and Synergistic Effects in M A Transactions in the Technology Media and Telecommunication Industry written by Anonym and published by Grin Publishing. This book was released on 2017-08-30 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: Bachelor Thesis from the year 2017 in the subject Business economics - Investment and Finance, grade: 1, language: English, abstract: Mergers and acquisitions are one of the most used opportunities to combine businesses and achieve growth inorganically, despite a high failure rate. The main motive during transactions is the realization of synergies. To achieve those synergies, the mechanisms of those effects need to be evoked by certain success factors during the post-merger integration. A post-merger integration that is executed incorrectly is one of the main reasons why transactions go fail and synergies are not achieved. This thesis will examine synergies and success factors for the post-merger integration of mergers and acquisitions in the technology, media and telecommunication industry, focusing on the acquisition of Time Warner Inc. by AT&T Inc. The technology, media and telecommunication industry is currently flourishing, which is evidenced by an increasing number of transactions. Nevertheless, wireless and mobile giants like AT&T are under huge pressure in their traditional barriers of business and therefore depend on a new strategy to diversify outside their traditional barriers of business. For this purpose, AT&T aims at generating further growth in the video and entertainment market through the acquisition of Time Warner. AT&T would not only increase their growth but they would also build up a second foothold since their traditional business is stagnating. AT&T will become the leader in converging technology, media and telecommunication.