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Masterminding the Deal by Roger Mills, Peter Clark

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03

Criteria: First, get the merger valuation methodology right

CHAPTER CONTENTS

3.1   You can’t manage what you can’t measure especially when it comes to M&A

3.2   Criteria-setters: preeminence of continuing shareholders of the acquiring firm

3.3   Overview: four alternative merger valuation methods

3.4   Event studies (ES): exceeding the limits of rational market theory

3.5   Total shareholder return (TSR): most appropriate for round turn financial acquirers?

3.6   Value gap (VG): do synergies offset the price premium necessary to acquire the target?

3.7   Incremental value effect (IVE): two-scenario DCF analysis, adapted to mergers

3.8   Reconciling the tier I merger valuation methodologies

3.9   Multiples: critical confirmation role in merger ...

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