文档介绍：Mergers & Acquisitions Introduction to part II and part III
M&A | Introduction - Part II and Part II | 7/02/2012
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Mergers & Acquisitions
Introduction to part II and part III
M&A | Introduction - Part II and Part II | 7/02/2012
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P/E game: ignoring Modigliani-Miller theorem …
Assets
Debts
0
500
750
800
875
938
969
969
Equity
500
250
200
125
63
31
31
Interest rate
3%
3%
3%
3%
3%
3%
3%
3%
Market value / share
2
2
2
2
2
2
2
10
Shares outstanding
500
250
125
100
62,5
31,25
15,625
15,625
Asset / Equity
1
2
4
5
8
16
32
32
Earnings before interest
40
40
40
40
40
40
40
40
Interests
0
15
22,5
24
26
28
29
29
Earnings after interests
40
25
17,5
16
14
12
11
11
ROE
4%
5%
7%
8%
11%
19%
35%
35%
EPS
0,08
0,1
0,14
0,16
0,22
0,38
0,7
0,7
P/E
25,0
20,0
14,3
12,5
9,1
5,3
2,9
14,3
Return on Share
0,05
0,07
0,08
0,11
0,19
0,35
0,07
Rs
5%
7%
8%
11%
19%
35%
35%
Ro =
4%
4%
4%
4%
4%
4%
4%
B/S
1
3
4
7
15
31
31
As a shareholder, pany structure do you prefer?
M&A | Introduction - Part II and Part II | 7/02/2012
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… at your own risk in downturns
Are you sure?
M&A | Introduction - Part II and Part II | 7/02/2012
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M&A
Key messages
When a CEO wants to boost corporate performance or jump-start long-term growth, the thought of acquiring pany can be extraordinarily seductive
Indeed, companies spend more than $2 trillion on acquisitions every year
Yet study after study puts the failure rate of mergers and acquisitions somewhere between 70% and 90%.
Companies too often pay the wrong price and integrate the acquisition in the wrong way
The ess or failure of an acquisition lies in the nuts and bolts of integration.
M&A | Introduction - Part II and Part II | 7/02/2012
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M&A
Key messages
DEAL
BEFORE
AFTER
E
GOOD
BAD
Session 1
Session 1: t