Merger model basic - Study guides, Class notes & Summaries

Organization -Correct Answer A social unit of people structured and managed to meet a need or pursue collective goals Human Resource Management -Correct Answer Entire set of activities used by an organization to align its human capital with organizational objectives and strategies Examples of Intangible Resources -Correct Answer Human Capital Social Capital Intellectual Capital Organizational Capability Human Capital -Correct Answer Tacit knowledge Education and experience Work-rel...

What's the difference between a "Merger" and an "Acquisition"? In a merger, the buyer and seller are about the same size, whereas in an acquisition the *buyer* is significantly bigger (usually at least 2-3x bigger by revenue or market cap) Walk me through a basic merger model 1. Determine the purchase price, purchase method and other assumptions (deal fees, synergies, etc.) 2. Forecast the 3 statements for both buyer + seller 3. Calculate Goodwill and Allocate the Purchase Price 4. Combine...

Why would a company want to acquire another company?A company would acquire another company if it believes it will earn a good return on its investment - either in the form of a literal ROI, or in terms of a higher Earnings Per Share (EPS) number, which appeals to shareholders. There are several reasons why a buyer might believe this to be the case: • The buyer wants to gain market share by buying a competitor. • The buyer needs to grow more quickly and sees an acquisition as a way to do t...

LBO Model Guide Questions and Answers Does reducing the amount of cash you pay upfront increase or decrease your returns? Why? - ANSWER ️️ Increase; money today is worth more than money tomorrow Basic explanation of what a PE firm does - ANSWER ️️ It buys a company using some combination of debt and equity and then sell it in 3-5 years for a return. The firm uses the company's cash flows to pay off interest and debt principal The 3 key reasons that an LBO works - ANSWER ️️ 1. ...

LBO Model Guide Questions and Answers Does reducing the amount of cash you pay upfront increase or decrease your returns? Why? - ANSWER ️️ Increase; money today is worth more than money tomorrow Basic explanation of what a PE firm does - ANSWER ️️ It buys a company using some combination of debt and equity and then sell it in 3-5 years for a return. The firm uses the company's cash flows to pay off interest and debt principal The 3 key reasons that an LBO works - ANSWER ️️ 1. ...

Organization A social unit of people structured and managed to meet a need or pursue collective goals Human Resource Management Entire set of activities used by an organization to align its human capital with organizational objectives and strategies Examples of Intangible Resources Human Capital Social Capital Intellectual Capital Organizational Capability Human Capital Tacit knowledge Education and experience Work-related know-how Social Capital Corporate C...

WPC 480: M1-M13 QUESTIONS AND ANSWERS 100% PASS The purpose of strategy in business is to do what? To create and provide the business with sustainable competitive advantage The difference between strategic decisions and tactical decisions is one of degree. The characteristics that differentiate between a strategic decision and a tactical decision is based on which of the following. Amount of available resources consumed by the decision, Ability to reverse the decision and Temporal im...

For which of the following reasons below might an acquirer decide to purchase another company? a. The acquisition represents a good potential Internal Rate of Return (IRR) and Return on Investment (ROI) b. To acquire a high-growth company to accelerate the buyer's growth rate c. To increase the buyer's Earnings Per Share (EPS), which may result in a higher stock price for the buyer d. Because of office politics, ego, and the need for management or executives to "prove" themselv...

LBO Model Guide Correct Questions and Answers(Latest Update 2023/2024) Does reducing the amount of cash you pay upfront increase or decrease your returns? Why? - ANSWER Increase; money today is worth more than money tomorrow Basic explanation of what a PE firm does - ANSWER It buys a company using some combination of debt and equity and then sell it in 3-5 years for a return. The firm uses the company's cash flows to pay off interest and debt principal The 3 key reasons that an LBO works...

Mkt 3210 Exam Questions And Answers (Verified And Updated) customer relationships - answer· Main purpose of a salesperson is not to make sales, but to create ______________ _____________ Prospecting - answerIdentifying and developing potential customers is known as Prospecting - answer· Systematic process of identifying potential customers reasons for customer attrition - answerthe following are? One-time need or an extended time between purchases · Movement outside of territory · C...