Company Takeover & Mergers
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Services of other enterprises
Description
PKC Corporate Consultants Private Limited Specializes in Takeover and mergers
We aim to enhance your understanding of integration in business. By the end, you should be able to:
1- Identify the types of integration that takes place in markets
2- Understand the difference between horizontal and vertical integration
3- Identify the main types of economy of scale
In theory, merger analysis is simple. The acquiring firm carries out an analysis to value the target company. The acquiring firm then seeks to buy the firm at less than the estimated value if possible. However, the target company would only accept the firm's offer if the offer price exceeds its value when it is operated independently. Doing so should maximize shareholder's wealth. In practice, merger analysis is much more complicated and raises a number of complex issues.
Today, many valuation techniques exist. This paper centers on the discounted cash flow and the market multiple analysis methods. No matter the method used, it is important to know that the target company in general does not continue to operate as a separate unit. The acquired firm becomes part of the acquiring firm's assets. This is important to consider because the operational changes that occur significantly influence the value of the business. For that reason those changes have to be considered.
We aim to enhance your understanding of integration in business. By the end, you should be able to:
1- Identify the types of integration that takes place in markets
2- Understand the difference between horizontal and vertical integration
3- Identify the main types of economy of scale
In theory, merger analysis is simple. The acquiring firm carries out an analysis to value the target company. The acquiring firm then seeks to buy the firm at less than the estimated value if possible. However, the target company would only accept the firm's offer if the offer price exceeds its value when it is operated independently. Doing so should maximize shareholder's wealth. In practice, merger analysis is much more complicated and raises a number of complex issues.
Today, many valuation techniques exist. This paper centers on the discounted cash flow and the market multiple analysis methods. No matter the method used, it is important to know that the target company in general does not continue to operate as a separate unit. The acquired firm becomes part of the acquiring firm's assets. This is important to consider because the operational changes that occur significantly influence the value of the business. For that reason those changes have to be considered.
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Company Takeover & Mergers
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