The M&A model tells an estimated investment return and if a project is worth acquisition. If you decide to merge, how much would you bid for it? Next, I would use the discounted cash flow (DCF) models, adjusted present value (APV) models, and relative valuation models to estimate the target firm value. DCF models and relative valuation models are used to evaluate a firm/project (enterprise level) in this section, whereas they are utilized to judge if a stock is worth investment (price level) in the Business Valuation section.
This 1st case, ACC - Airthread Acquisition, concerns the comparison between DCF and APV model. Detailed case description is presented after the case analysis as the following:
This 1st case, ACC - Airthread Acquisition, concerns the comparison between DCF and APV model. Detailed case description is presented after the case analysis as the following:
Your browser does not support viewing this document. Click here to download the document.
Your browser does not support viewing this document. Click here to download the document.
The 2nd case, AGI - Mercury Acquisition, will discuss why Mercury is a good target for AGI and compare DCF and Relative Valuation approaches in valuation.
Your browser does not support viewing this document. Click here to download the document.
Your browser does not support viewing this document. Click here to download the document.
In the 3rd case, Kohler Recapitalization, I evaluated a privately held firm by DCF model with a concern of control premium and discount.
Your browser does not support viewing this document. Click here to download the document.
Your browser does not support viewing this document. Click here to download the document.