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The Unseen Hand: Tariffs and Their Profound Consequences on Mergers & Acquisitions

MergersCorp M&A International

Far from being mere taxes on goods, these duties exert a profound and multifaceted influence on the landscape of Mergers & Acquisitions (M&A). This increased risk can lead to a higher weighted average cost of capital (WACC) for the target, further reducing its discounted cash flow (DCF) valuation.

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Best Practices for Due Diligence and Valuation in M&A

Sun Acquisitions

Due diligence and valuation are critical to any successful merger and acquisition (M&A) deal. Discounted Cash Flow (DCF) Analysis: Projects future cash flows and discounts them to their present value. Precedent Transaction Analysis: Analyzes recent M&A transactions involving similar companies.

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Delaware Supreme Court Affirms Delaware Court Of Chancery's Use Of Its Own DCF Method To Determine Fair Value After Controller-Directed Cash-Out Merger

Shearman & Sterling

On October 30, 2017, the Delaware Supreme Court affirmed the decision of the Delaware Court of Chancery determining the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by minority stockholders following the cash-out merger of ISN with its wholly-owned subsidiary, at the direction of its controlling stockholder.

DCF
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Top DCF Modeling Courses for Aspiring Finance Professionals

OfficeHours

The discounted cash flow analysis, commonly referred to as the DCF, along with the Leverage Buyout Analysis, commonly referred to as the LBO, are some of the most commonly used and complex financial modeling techniques on the Street today.

DCF
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Understanding Valuation Techniques in Mergers and Acquisitions

Sun Acquisitions

Mergers and acquisitions (M&A) play a vital role in shaping the business landscape, enabling companies to expand, diversify, and gain a competitive edge. Income-Based Valuation The income-based valuation method focuses on the target company’s ability to generate future cash flows and assesses the present value of these cash flows.

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Vertical Merger Integration: Definition, Legal, and Regulatory Considerations

Peak Frameworks

Understanding Vertical Mergers A vertical merger involves a company integrating with another that operates within its own supply chain, either upstream (suppliers) or downstream (distributors). Anti-trust Issues: Especially in North America, regulatory scrutiny can delay or derail mergers that significantly alter market dynamics.

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Delaware Chancery Court Utilizes DCF Method to Determine Fair Value of ISN Software Corp.

Shearman & Sterling

On August 11, 2016, Vice Chancellor Sam Glasscock III of the Delaware Court of Chancery relied on his own discounted cash flow ("DCF") analysis to determine the fair value of ISN Software Corp. ("ISN") in an appraisal action brought by two minority shareholders following the merger of ISN with its wholly-owned subsidiary.

DCF