Corporate Valuation, Restructuring and
M&A’s
Inhoudsopgave
Cash Flow Statement (H2).............................................................................................................................. 2
Free Cash Flow............................................................................................................................................... 2
Managerial Balance Sheet (H2)...................................................................................................................... 3
Cost of Capital (H3)........................................................................................................................................ 3
Alleen gefinancierd met Equity:...........................................................................................................................3
Gefinancierd met een gegeven hoeveelheid debt:...............................................................................................3
Gefinancierd met een gegeven Debt/Equity ratio...............................................................................................4
Financial Leverage met Mixed Financing Policies................................................................................................4
Beta Estimation (H5, Lecture 6)...................................................................................................................... 5
Asset Betas: Equity Approach (H6).......................................................................................................................5
Terminal Value (Lecture 8, H9)....................................................................................................................... 6
Decay....................................................................................................................................................................7
Terminal Value voor verschillende manieren van financiering............................................................................8
Introduction.................................................................................................................................................. 8
Definities...............................................................................................................................................................8
Soorten Mergers...................................................................................................................................................8
Motives......................................................................................................................................................... 9
Returns to Mergers........................................................................................................................................ 9
Returns to Mergers Evidence....................................................................................................................... 10
Combined Returns..............................................................................................................................................10
Factoren gerelateerd aan target returns...........................................................................................................11
Target run-up.....................................................................................................................................................11
Factoren gerelateerd aan bidder returns...........................................................................................................11
Post-merger performance..................................................................................................................................12
Valuation of an Acquisition.......................................................................................................................... 12
Voorbeeld: Discounted Cash Flow Analysis – ASML-Cymer Deal.......................................................................13
Leveraged Buy-Out...................................................................................................................................... 14
Takeover Defenses....................................................................................................................................... 16
,Valuation
Cash Flow Statement (H2)
Revenue
- COGS
= Gross Margin
- SGA
- Depreciation
= EBIT Tot aan hier is het income statement gevolgd
- Tax
+ Depreciation In het income statement is depreciation in mindering
gebracht, maar dit is geen CF, dus wordt weer bijgevoegd
- ΔWorking Capital = Receivables + Inventory – Payables
= Operating Cash Flow
- Investment Cash Flows = FAT – FAT-1 + Depreciation
= Investment Cash Flow
- Interest Payments
- Debt Repayments = DebtT – DebtT-1
- Dividend Payments
- Equity Repurchases = EquityT – (EquityT-1 + Retained Earnings)
= Financing Cash Flow
= Net Cash Flow
Free Cash Flow
Revenue
- COGS
= Gross Margin
- SGA
- Depreciation
= EBIT Tot aan hier is het income statement gevolgd
- Tax Belasting wordt direct van EBIT afgehaald, omdat er vanuit
wordt gegaan dat er geen debt financing is. Dit is omdat debt
zorgt voor belastingvoordeel, en geen extra bijdragen vanuit
operations.
= NOPAT
+ Depreciation Omdat de in mindering gebrachte depreciatie in het income
statement geen uitgaande cash flow betreft
= Gross Cash Flow
- ΔWorking Capital = Inventory + Receivables – Payables
- ΔCapital Expenditures = ΔFixed Assets + Depreciation
, = Free Cash Flow
Managerial Balance Sheet (H2)
Accounting Balance Sheet
Cash Short-Term Debt
Inventory Accounts Payable
Accounts Receivable Current Liabilities
Current Assets
Long-Term Debt
Tangible Fixed Assets Non-Current Liabilities
Intangible Fixed Assets
Non-Current Assets Equity
Total Assets Total Liabilities
Managerial Balance Sheet
Excess Cash Total Debt
+ Inventories Total Equity
+ Accounts Receivable
- Accounts Payable
= Working Capital
Fixed Assets
Invested Capital Invested Capital
Dus accounts payable is van de inventory en accounts receivable afgehaald om tot working
capital te komen, en de short-term en long-term debt zijn bij elkaar gevoegd om tot debt te
komen.
Cost of Capital (H3)
Alleen gefinancierd met Equity:
Omdat het bedrijf alleen gefinancierd is met equity, moet de waarde van de equity E , gelijk
zijn aan de unlevered value, V U , en de cost of equity is gelijk aan de unlevered cost of
capital:
FCF t
E=Σ ¿ ¿
Gefinancierd met een gegeven hoeveelheid debt:
Dus het bedrijf is gefinancierd met Equity E, en Debt D, waarbij het beleid van het bedrijf is
om een bepaald vast niveau van Debt te houden, dus niet een vast Debt/Equity ratio. Het
M&A’s
Inhoudsopgave
Cash Flow Statement (H2).............................................................................................................................. 2
Free Cash Flow............................................................................................................................................... 2
Managerial Balance Sheet (H2)...................................................................................................................... 3
Cost of Capital (H3)........................................................................................................................................ 3
Alleen gefinancierd met Equity:...........................................................................................................................3
Gefinancierd met een gegeven hoeveelheid debt:...............................................................................................3
Gefinancierd met een gegeven Debt/Equity ratio...............................................................................................4
Financial Leverage met Mixed Financing Policies................................................................................................4
Beta Estimation (H5, Lecture 6)...................................................................................................................... 5
Asset Betas: Equity Approach (H6).......................................................................................................................5
Terminal Value (Lecture 8, H9)....................................................................................................................... 6
Decay....................................................................................................................................................................7
Terminal Value voor verschillende manieren van financiering............................................................................8
Introduction.................................................................................................................................................. 8
Definities...............................................................................................................................................................8
Soorten Mergers...................................................................................................................................................8
Motives......................................................................................................................................................... 9
Returns to Mergers........................................................................................................................................ 9
Returns to Mergers Evidence....................................................................................................................... 10
Combined Returns..............................................................................................................................................10
Factoren gerelateerd aan target returns...........................................................................................................11
Target run-up.....................................................................................................................................................11
Factoren gerelateerd aan bidder returns...........................................................................................................11
Post-merger performance..................................................................................................................................12
Valuation of an Acquisition.......................................................................................................................... 12
Voorbeeld: Discounted Cash Flow Analysis – ASML-Cymer Deal.......................................................................13
Leveraged Buy-Out...................................................................................................................................... 14
Takeover Defenses....................................................................................................................................... 16
,Valuation
Cash Flow Statement (H2)
Revenue
- COGS
= Gross Margin
- SGA
- Depreciation
= EBIT Tot aan hier is het income statement gevolgd
- Tax
+ Depreciation In het income statement is depreciation in mindering
gebracht, maar dit is geen CF, dus wordt weer bijgevoegd
- ΔWorking Capital = Receivables + Inventory – Payables
= Operating Cash Flow
- Investment Cash Flows = FAT – FAT-1 + Depreciation
= Investment Cash Flow
- Interest Payments
- Debt Repayments = DebtT – DebtT-1
- Dividend Payments
- Equity Repurchases = EquityT – (EquityT-1 + Retained Earnings)
= Financing Cash Flow
= Net Cash Flow
Free Cash Flow
Revenue
- COGS
= Gross Margin
- SGA
- Depreciation
= EBIT Tot aan hier is het income statement gevolgd
- Tax Belasting wordt direct van EBIT afgehaald, omdat er vanuit
wordt gegaan dat er geen debt financing is. Dit is omdat debt
zorgt voor belastingvoordeel, en geen extra bijdragen vanuit
operations.
= NOPAT
+ Depreciation Omdat de in mindering gebrachte depreciatie in het income
statement geen uitgaande cash flow betreft
= Gross Cash Flow
- ΔWorking Capital = Inventory + Receivables – Payables
- ΔCapital Expenditures = ΔFixed Assets + Depreciation
, = Free Cash Flow
Managerial Balance Sheet (H2)
Accounting Balance Sheet
Cash Short-Term Debt
Inventory Accounts Payable
Accounts Receivable Current Liabilities
Current Assets
Long-Term Debt
Tangible Fixed Assets Non-Current Liabilities
Intangible Fixed Assets
Non-Current Assets Equity
Total Assets Total Liabilities
Managerial Balance Sheet
Excess Cash Total Debt
+ Inventories Total Equity
+ Accounts Receivable
- Accounts Payable
= Working Capital
Fixed Assets
Invested Capital Invested Capital
Dus accounts payable is van de inventory en accounts receivable afgehaald om tot working
capital te komen, en de short-term en long-term debt zijn bij elkaar gevoegd om tot debt te
komen.
Cost of Capital (H3)
Alleen gefinancierd met Equity:
Omdat het bedrijf alleen gefinancierd is met equity, moet de waarde van de equity E , gelijk
zijn aan de unlevered value, V U , en de cost of equity is gelijk aan de unlevered cost of
capital:
FCF t
E=Σ ¿ ¿
Gefinancierd met een gegeven hoeveelheid debt:
Dus het bedrijf is gefinancierd met Equity E, en Debt D, waarbij het beleid van het bedrijf is
om een bepaald vast niveau van Debt te houden, dus niet een vast Debt/Equity ratio. Het
