Valuation for Mergers, Buyouts, and Restructuring, Second Edition

Index

A

Absolute priority, 295

Accounting

asset impairment, 297

asset restructuring, 318–324

fresh-start, 297

goodwill, 67, 158–161

goodwill in EVA, 404–405

mergers, 158–160

negative goodwill, 159–160

pooling, 159, 404–405

purchase, 159

recapitalization, 427–428

troubled debt restructuring, 297

Accretion-dilution analysis, 169–171, 179

Adjusted present value (APV), 96–112

compressed, 104–106

HLF calculator, 361

leverage above target, 101–102

original, 96–102, 279–280, 307, 312

recursive, 102–104

American depository receipts (ADRs), 224, 357

Appraisal rights, 154

Arbitrage pricing theory, 54–55

Arbitrage pricing, 132

Asset disposition, 320–322

Asset purchase. See Mergers and acquisitions

Asset restructuring, 318–342

Asset turnover ratio, 16, 115

B

Balance sheet adjustments, 27–29

Balance sheet, 10–11, 179–180, 396–397

Beta, 15, 37, 48

adjusted, 48

estimation, 48, 51–52, 57–58

levering/unlevering, 48–50

Black-Scholes formula, 347, 428–429

Break-even synergies, 167–168

Brownian motion, 134, 144, 411

C

Cancellation of indebtedness (COD), 298–299

Capital assets pricing model (CAPM), 37, 50–52

Capital expenditures

in debt capacity, 123, 126

in economic value added, 88

in free cash flow, 13

Capital leases, 67

Carve outs, 321–323

Cash and marketable securities, 28

Cash flow statement, 12, 397

Cash flow to equity, 21–22

Changing capital structure, 96–97

recursive WACC, 102–104

Class shares. See Tracking stock

Collars, 223–224, 228–232

Comparables, 66–70

Conglomerates, 318–320

Consensus ...