Big4WallStreet Finance Blog
MERGERS AND ACQUISITIONS ANALYSIS
accretion Acquisitions Buyer dilution Financial Modeling investement banking Investment M&A Mergers model Seller synergies Transaction valuation
Overview A merger is the combination of two businesses, while an acquisition is the purchase of the ownership of one business by another. Mergers & Acquisitions models (M&A) involve analysis for scenarios in which one company (the Buyer) proposes to offer cash or its own shares in order to purchase the shares of another company (the Seller or the Target). Reasons for M&As M&A may increase the value for the buyer by creating an important value driver known as Synergies (ways to increase profit / earnings through an acquisition), among other reasons. Various reasons can lead to an M&A transaction:...
LEVERAGED BUYOUT ANALYSIS
Excel Financial Model Financial Modeling LBO Leveraged Buy Out Model
Management Accounting (Part 2)
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Management Accounting
accounting break even analysis budgeting controlling cost decision making finance management accounting planning
1. Intro to Management Accounting a. Definition “Management accounting is a system which analyses historical, actual and forecast data to provide managers the information for decision making.” b. The management accounting department The department provides management information for: Planning: budget for the year, budget updates during the year, long term plan beyond the year. Controlling: how do the revenues and costs compare with the budgeted ones and those of the previous periods. What are the variances? What are the reasons for the variances? Decision Making: profitability assessment, buildup of selling prices, product costs comparisons (inventory, manufacturing, labor etc..), make...
Valuation Pitfalls
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The difficulty of a valuation does not focus on how to find and apply any of the chosen methods, but rather on the ability to predict the future. In practice what is valued is the business model, the company strategy, the attraction of its products, its prospects and its risks.
Below we outline a series of pitfalls common among analysts and investors related to the valuation of a company.