Chapter 14

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


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 ...

Get Mergers, Acquisitions, and Other Restructuring Activities, 10th Edition now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.