Business valuation for the sale or purchase of a firm is not the most important activity carried out by a company. The most crucial investment decision made by a business is acquisitions of other enterprises.
The process of business valuation and merger acquisition valuation are somewhat similar. However it is more tasking performing a merger acquisition valuation. One major reason firms merge is to enjoy a level of synergy, which may lead to increased revenues, lower costs or both.
Examples of mergers and acquisitions in the real world are, Wachovia-Wells Fargo merger and Huron Consulting-Callaway Partner?s acquisitions.
5 different types of acquisitions
- Merger- The target firm becomes non-existence and becomes part of the bidding firm.
- Consolidation- After merger, a new enterprise is formed and the bidding firm and target firm shareholders are awarded stocks in the company.
- Tender Offer- This is a hostile take-over.
- Purchase of Assets- A Company buys the assets of another firm.
- Management or Leveraged Buyout- Management or a group of investors purchase a company. The leveraged buyout is financed through borrowed money. Target firm transforms from a public company to a private company.
Acquisition is sometimes confused as the sale or purchase of a business. However, there is some overlapping or commonalities between them in their business valuation process.
Contact us for a free consultation
407 Olde Mill Lane| Norcross, GA 30093| USA| Phone: 1-404-453-7848| Email: info@theboaconsulting.com
Source: http://www.theboaconsulting.com/tips-to-valuing-an-acquisition-business-valuation.html
gla republican candidates virginia tech mike martz hokies quadrantid norv turner
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.