Business Administration 3303K Study Guide - Final Guide: Capital Structure, High High, Dissociation Constant
22 Mar 2019
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Executive summary: leave space, state decisions with key elements, price, bid strategy, risks, contingency. Needs a premium over current stock price that is fair: analyst wants to depict reality. Not sell and raise money through debt or an ipo. Wait and sell later may increase ebitda even though multiple will be stable. *criteria: performance (valuation vs. stock price) Wait and go public when the economy is better. *criteria: maximize shareholder value 1) fit, and 2) price: does it add value by merging? (investors could just invest in both) Bid for oshawa price, synergies, financing. *criteria: maximize shareholder value price, synergies. Qualitative only points that relate to valuation, if none for a part move on. Interest rate outlook: cost of debt wacc effects on valuation financing of acquisition. Increase rate = increase wacc & finance through equity: consumer spending revenue growth. Industry (do both industries if buyer and seller are different industries)
