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M&A Blog #11 – buy-side acquisition

Francine Way

Thus far in the last 10 blog posts, we have discussed what M&A is, its success metrics, types of acquirers and value creations, capital structure, debt, and equity. It is ABSOLUTELY crucial that a corporate acquisition program is aligned with the corporate strategy. and (4) support long-term business strategy. Any unions?

M&A 130
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M&A Blog #24 - Merger Relative Valuation

Francine Way

It has been roughly three years since my last blog post at the completion of my fellowship. Many things have happened since then, including having 2 Corporate Development & Strategy jobs with a large, domestic conglomerate in Jacksonville, Florida and a smaller international technology company in Seattle, Washington.

Valuation 130
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M&A Blog #10 – equity (accretion / dilution)

Francine Way

The concept can be extended to corporation: equity owners (shareholders) own the company alongside debt holders (banks). Public company audited financial statements typically receive a good deal of scrutiny from accountants, equity analysts, and regulatory agencies.

M&A 130
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M&A Blog #16 – valuation (Discounted Cash Flow)

Francine Way

Essentially, it is a way to value a company based on cash generated from operation, taking into account all major expenses. Each analyst has his/her own preferences and, assuming adherence to basic accounting principles, these different preferences are okay. Remember the cardinal rule in accounting: balance sheet must balance.

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M&A Blog #06 – debt (Part I – role and trade-offs, categories and key characteristics)

Francine Way

In the last two blog posts, we walked through capital structure and how it impacts M&A activities and vice versa. We will now go through a series of four blog posts that dive deeper into debt - specifically, the various considerations one ought to take into account when planning to use debt for an acquisition.

Debt 130
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M&A Blog #19 – valuation (Leveraged Buy Out - LBO)

Francine Way

While this method is not usually used by strategic acquirers (corporations) to justify their offers, savvy strategic acquirers do perform the analysis to figure out what a PE competitor in an auction environment would be willing to pay for a target. Balance Sheet Assumptions: Days Accounts Receivable (AR) = AR / Revenue * 360.

Valuation 130
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M&A Blog #12 – sell-side acquisition (preparation)

Francine Way

An open-ended process distracts management, can cause corporate performance to suffer, and opens the possibilities for adverse market conditions. In an earlier M&A post, we have discussed how private companies’ accounting statements differ from public companies’. Time is not a seller’s friend.

M&A 130