Business Administration 3303K Study Guide - Final Guide: Working Capital, Risk Premium, Market Power

54 views11 pages

Document Summary

Execuive summary (last 5 minutes: briely summarize main decision points. If not pursuing ipo then talk about other way to raise funds. Size up (55 minutes: ie everything to decision and valuaion. External/industry size up: growth, is this industry mature, opportuniies/risks, margins in the industry, consider pest (poliical, economical, social, technological) implicaions, industry trends/atraciveness, porter"s five forces. Barriers to entry; ive forces that determine the compeiive intensity and therefore atraciveness of a market: compeitors, consumers, pest trends. Supporive of higher growth projecions: interest rates. Internal size up (for m&a do for both buyer and seller: product/service ofering, swot, operaional capabiliies (margins, costs, etc. , management capabiliies, compeiive advantage, growth proile, markeing, financial size up. Relate back to growth, margin, and risk: time series vs. Eiciency: days of payables, days of receivable, days of inventory. Proitability: roa, roe, proit margins, sales growth. Capacity: debt to assets, debt to equity, interest coverage. Dcf (stand-alone, with synergies) for target company if m&a.