Mergers, Acquisitions, and Other Restructuring Activities, 10th Edition

Introduction

A business is worth what people are willing to pay for it. And what people are willing to pay often varies widely due to different opinions about the future, what the key drivers of value are in a given industry, the magnitude of potential synergy, and how quickly perceived synergy can be realized. What is ultimately paid reflects the relative bargaining position of the parties involved in the negotiation and their ability to remain detached from the process. The latter factor requires substantial discipline in controlling one's emotions. Thankfully, tools exist to assist in that regard. Alternative valuation methods and basic financial modeling help strip away some of the subjectivity inherent in determining the true or intrinsic ...