Chapter 14

Applying Financial Models: To Value, Structure, and Negotiate Stock and Asset Purchases

Abstract

In this chapter, the focus is on the application of financial modeling to value and structure mergers and acquisitions (M&As). A detailed discussion of how to construct M&A financial models is beyond the scope of this chapter. Rather, the intent of this chapter is to provide the reader with an appreciation of the general characteristics of such models, their data input requirements, and how they may be used to address questions relating to valuation, deal structuring, and financing, as well as their limitations. For example, models help an acquirer determine the implications of various possible deal structures before submitting an initial ...

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