Valuation for Mergers, Buyouts, and Restructuring, Second Edition

Preface

This book presents a comprehensive approach to corporate valuation. It treats in detail the valuation of mergers, acquisitions and leverage buyouts, and the assessment of recapitalization and restructuring plans. It contains valuation procedures and examples for the different types of transactions and contractual arrangements commonly encountered in practice. It also discusses the theoretical underpinnings and the research evidence that justifies the recommended procedures.

The book is intended as the core text for corporate valuation and entrepreneurial finance courses taught to finance majors in undergraduate and MBA programs, and as a reference source for professionals involved in transaction valuation.

The book assumes that readers are familiar with basic accounting and finance concepts. The mathematical requirement is limited to basic algebra with the exception of a few sections on option pricing applications that use calculus notation. Mathematical details have been relegated to notes at the end of the book.

VALUATION PROCEDURES

The reader will find assistance and procedures to undertake the following tasks:

• Valuation of stand-alone companies and business units from the points of view of the acquirer and the seller, with procedures for testing assumptions and results.
• Valuation of a merged firm involving the combination of two or more companies or business units, including expected share price impact, valuation of synergies, accretion-dilution analysis of earnings, ...