Valuation for Mergers, Buyouts and Restructuring

Abstract

Valuation for Mergers, Buyouts and Restructuring presents a comprehensive approach to corporate valuation. It treats in detail the valuation of mergers, acquisitions and leverage buyouts, and the assessment of asset restructuring options and recapitalization plans. It contains valuation procedures and examples for the different types of transactions and contractual arrangements commonly encountered in practice. It also discusses the theoretical underpinnings and the research evidence that justifies the recommended procedures.

The book treats in detail the following valuation procedures:

- Valuation of stand-alone companies and business units with procedures for testing assumptions and results.

- Valuation of a merged firm involving the combination of two or more companies or business units, including expected price share impact, valuation of synergies, accretion-dilution analysis, and scenario analysis.

- Valuation of foreign firms in developed and emerging markets and how to treat foreign exchange translation, inflation, and country risk.

- Assessment of the value creation potential of business units and their restructuring options in terms of economic value added.

- Structuring and valuing leveraged buyouts and the recapitalization of troubled companies.

- Valuation of contingent clauses and agreements commonly included in the terms of a transaction.

- Valuation of real options in mergers and acquisitions involving postponement, entry, foothold, and exit options.

This document provides additional information about the contents of the book and its software.

Keywords: Valuation, Mergers and Aquisitions, LBOs, Restructuring

JEL Classification: G30, G32, G34