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Mergers & Acquisitions and Corporate Valuation

Manu Sharma

ISBN: 9789351197942

284 pages

eBook also available for institutional users 

INR 399


The book Mergers & Acquisitions and Corporate Valuation: An Excel Based Approach is primarily designed for learners who want to pursue a career in the field of financial management. It is an ideal introductory book for the learners who are new to the subject. In addition, it is also an indispensable reference book for the professionals exposed to this field. The book provides clear and detailed explanations of the theory behind Mergers and Acquisitions (M&A). In addition, it discusses the valuation methodologies used in M&A in great detail.

Chapter 1: Motives behind Mergers & Acquisitions (M&A)

1.1 Motives of M&A

1.2 Summary

1.3 Exercises


Chapter 2: Reasons for M&A and Synergy Value Drivers

2.1 Reasons for Mergers and Acquisitions (M&A)

2.2 Synergy Value Drivers

2.3 Summary

2.4 Exercises


Chapter 3: Types of Mergers and Takeover Defenses

3.1 Horizontal Mergers

3.2 Vertical Mergers

3.3 Conglomerate Mergers

3.4 Joint Venture (JV)

3.5 Demerger

3.6 Spin-offs

3.7 Equity Carve-outs

3.8 Cross-border Mergers

3.9 Hostile Takeover

3.10 Hostile Takeover Defense Strategies

3.11 Summary

3.12 Exercises


Chapter 4: Financing M&A

4.1 Source of Financing M&A

4.2 Debt Financing

4.3 Equity Financing

4.4 Cash Financing

4.5 Summary

4.6 Exercises


Chapter 5: Due Diligence for M&A

5.1 Corporate Information

5.2 Stockholders Information

5.3 Debt Schedule

5.4 Contractual Agreements

5.5 Legal Issues

5.6 Human Resource Information

5.7 Customers and Suppliers

5.8 Products and Services

5.9 Intellectual Property Contract

5.10 Financial Analysis

5.11 Tax Issues

5.12 Property Agreements and Issues

5.13 Insurance Information

5.14 Environmental Issues

5.15 Summary

5.16 Exercises


Chapter 6: Accounting for M&A

6.1 Purchase Accounting Method

6.2 Conditions of Purchase Accounting Method

6.3 Structuring Deal for M&A

6.4 Summary

6.5 Exercises


Chapter 7: Post-Merger Integration and Reasons for Success and Failure of M&A

7.1 Post-Merger Integration

7.2 Failures in Post-Merger Integration

7.3 Successful Post-Merger Integration

7.4 Summary

7.5 Exercises


Chapter 8: Cost of Capital Determination

8.1 Cost of Capital

8.2 Cost of Equity

8.3 Cost of Debt

8.4 Cost of Capital Analysis

8.5 Capital Structure Formation

8.6 Summary

8.7 Exercises


Chapter 9: Analysis of Beta and Cost of Equity of Live Firms

9.1 Case Studies on Bottom-Up Approach

9.2 Case Studies on Regression Analysis Approach

9.3 Summary

9.4 Exercises


Chapter 10: Discounted Cash Flow Based Valuation Approach

10.1 Discounted Cash Flow Based Valuation

10.2 Return on Capital

10.3 Re-investment Rate

10.4 Purpose of Valuation of Re-investment Rate

10.5 Budgeting Period for Re-investment Rate and Return on Capital

10.6 Terminal Value

10.7 Re-investment Rate in Terminal Years

10.8 Cost of Equity in Terminal Period

10.9 Cost of Debt in Terminal Period

10.10 Cost of Capital in Terminal Period

10.11 Present Value of Terminal Value

10.12 Value of Business and Value of Equity

10.13 Summary

10.14 Exercises


Chapter 11: Dividend Discount Based Valuation Approach

11.1 Earnings-based Valuation

11.2 Future Cash Flow Analysis

11.3 Return on Equity Analysis

11.4 Re-investment Rate Analysis

11.5 Length of High Growth Period and Cash Flows in High Growth Period

11.6 Terminal Value Analysis

11.7 Value of Business

11.8 Summary

11.9 Exercises


Chapter 12: How to Use Discount Cash Flow Based Model

12.1 Using the Discount Cash Flow Based Model

12.2 Valuation Case Studies

12.3 Summary

12.4 Exercises


Chapter 13: How to Use Dividend Discount Based Model

13.1 Using Earnings-Based Model

13.2 Valuation Case Studies

13.3 Summary

13.4 Exercises


Chapter 14: Relative Valuation (Comparable Firms Analysis)

14.1 Conceptual Framework of Relative Valuation

14.2 Searching Comparable Firms

14.3 Finding the Right Multiple in Relative Valuation

14.4 Choice of Variable in Relative Valuation

14.5 Choosing the Right Multiple for Relative Valuation

14.6 Determining the Value of Division

14.7 Relative Valuation Case Studies

14.8 Summary

14.9 Exercises


Chapter 15: M&A Modeling–Discounted Cash Flow Based Approach

15.1 Synergy Realization

15.2 Cash Flow Based M&A Model (Excel-based Model Usage)

15.3 Synergy Analysis

15.4 Summary

15.5 Exercises


Chapter 16: M&A Modeling – Dividend-Based Approach

16.1 Introduction to Dividend-Based Valuation Model

16.2 Synergy Analysis of the Combined Firm

16.3 Summary

16.4 Exercises


Chapter 17: Mixed Approach in M&A (Discounted Cash Flow and Dividend Mix)

17.1 Using the Mixed Model

17.2 Synergy Analysis

17.3 Financing of M&A Deal

17.4 Summary

17.5 Exercises


Chapter 18: Leveraged Buyouts (LBO): Strategic and Financial Analysis and Financial Modeling

18.1 Introduction to LBO

18.2 Criteria for LBO

18.3 LBO Strategic Analysis Model

18.4 LBO Financial Model Analysis

18.5 Case Studies of LBO

18.6 Summary

18.7 Exercises


Long-Answer Questions

Answers to Multiple-Choice Questions