Chapter 18. Acquisition analysis

IntroductionFinancial profile of Alpha Inc.Financial profile of Beta Inc.Acquisition — first offerAcquisition impact on EPSShareholder effects — generalizedSummary of effects on shareholdersRevised offerRelative versus absolute valuesSVA models — Alpha Inc. and Beta Inc.Addendum

 

Those who can win a war well can rarely make a good peace and those who could make a good peace would never have won the war.

 
 --SIR WINSTON CHURCHILL (1930)

Introduction

The acquisition/takeover scene has many similarities with a military campaign and it is where all aspects of financial analysis and company valuation come into their own.

In this chapter we will illustrate the steps needed for the financial analysis ...

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