Chapter 18. Acquisition analysis
Introduction • Financial profile of Alpha Inc. • Financial profile of Beta Inc. • Acquisition — first offer • Acquisition impact on EPS • Shareholder effects — generalized • Summary of effects on shareholders • Revised offer • Relative versus absolute values • SVA 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)|
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 ...