13. Mergers and Acquisitions

  1. Steven M. Bragg

Published Online: 13 DEC 2011

DOI: 10.1002/9781118268391.ch13

The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth

The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth

How to Cite

Bragg, S. M. (2011) Mergers and Acquisitions, in The New CEO Corporate Leadership Manual: Strategic and Analytical Tools for Growth, John Wiley & Sons, Inc., Hoboken, NJ, USA. doi: 10.1002/9781118268391.ch13

Publication History

  1. Published Online: 13 DEC 2011
  2. Published Print: 11 JUL 2011

ISBN Information

Print ISBN: 9780470912874

Online ISBN: 9781118268391

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Keywords:

  • acquisitions;
  • capacity analysis;
  • cash flow model;
  • chief executive officer (CEO);
  • complexity analysis;
  • financial analysis;
  • liquidation value;
  • mergers

Summary

One of the signature areas in which a chief executive officer (CEO) leaves her mark on a company is mergers and acquisitions, since a successful one can catapult the company into great prominence. This chapter addresses the types of mergers and acquisition analyses, and covers a variety of legal structures to use for an acquisition, which can be critical from a tax perspective. The analysis of an acquisition is like no other type of financial analysis-not because the analysis itself is different, but because of the logistics of the situation. Once a buyer has identified a prospective target, it needs to establish an initial valuation for it. The chapter describes a variety of valuation methods, the concept of the control premium, the discounted cash flow model, a variety of qualitative factors that can influence the valuation, and reasons for using different forms of payment.

Controlled Vocabulary Terms

Acquisitions and mergers; Chief executive officer; Discounted cash flow; Financial statement analysis; Valuation (Finance)