BUS 082 Lecture Notes - Lecture 24: Buy Side, Fixed Cost

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: Porterfield

Document Summary

Once the financing is received and conditions to closing in the definitive agreement are met, the transaction is funded and closed. Investment banking advisory assignment for a company seeking to buy another company, or part thereof, is referred to as a buy-side assignment. Core analytical work on buy-side advisory centres on the construction of a financial model: buy-side adviser is trusted with outmanoeuvring other bidders while not exceeding the client"s ability to pay. Company input is essential for performing mergers consequences analysis, including determining synergies and conducting eps accretion/(dilution) and balance sheet effects. Decision to buy another company is driven by numerous factors, including the desire to grow, improve, and/or expand an existing business platform. Growth through an acquisition represents a cheaper, faster, and less risky option than building a business from scratch. Successful acquirers are capable of fully integrating newly purchased companies quickly and efficiently with minimal disruption to the existing business.