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Catégorie :Category: nCreator TI-Nspire
Auteur Author: Diana.nt
Type : Classeur 3.0.1
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Mis en ligne Uploaded: 06/07/2025 - 13:10:16
Uploadeur Uploader: Diana.nt (Profil)
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Shortlink : https://tipla.net/a4783211
Type : Classeur 3.0.1
Page(s) : 1
Taille Size: 4.39 Ko KB
Mis en ligne Uploaded: 06/07/2025 - 13:10:16
Uploadeur Uploader: Diana.nt (Profil)
Téléchargements Downloads: 3
Visibilité Visibility: Archive publique
Shortlink : https://tipla.net/a4783211
Description
Fichier Nspire généré sur TI-Planet.org.
Compatible OS 3.0 et ultérieurs.
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CHAPTER I M&A BASICS AND TYPES A merger is when two companies voluntarily combine to form a single new entity. The goal is to pool resources, reduce redundancies, and improve overall performance. Example: GlaxoWellcome and SmithKline Beecham merged to create GSK. An acquisition occurs when one company (the acquirer) purchases another (the target). The target becomes a subsidiary or is fully absorbed. Example: Facebook acquired Instagram to expand in mobile social media. Types of M&A include: A horizontal merger involves two companies from the same industry, often competitors. The goal is to increase market share, reduce competition, and generate cost synergies. A vertical merger involves companies from different stages of the supply chain. For example, a manufacturer merging with a distributor. The aim is better control over operations and cost reduction. A conglomerate merger involves companies from unrelated industries. This type of merger is used for diversification and risk reduction. A friendly acquisition occurs with the consent of the target companys management and board. It usually involves cooperative negotiations and mutual benefits. A hostile takeover happens when the targets management resists the acquisition. The acquirer bypasses them and goes directly to the shareholders with a tender offer. Example: Krafts takeover of Cadbury. CHAPTER II DEAL STRUCTURING Deal types include: An asset purchase is when the buyer purchases specific assets (like buildings, patents, or equipment) of the target company. It avoids liabilities but is more legally complex. A stock purchase is when the buyer purchases shares from shareholders, gaining full ownership including liabilities. It is faster but riskier. A merger creates a single legal entity through combining two companies. It can be a true merger of equals or a reconstitution under one entity. A tender offer is made directly to the shareholders, typically at a premium over market price, bypassing the companys board. A leveraged buyout (LBO) is an acquisition financed largely by debt. The acquired companys cash flows are used to repay the debt. A management buyout (MBO) occurs when the current management team purchases the company, often supported by external financing. CHAPTER III COMPANY VALUATION METHODS 1. Asset-Based Approach (NAV) Formula: NAV = (Total Assets Total Liabilities) / Number of Shares Example: If a company has ¬1,800,000 in assets, ¬200,000 in liabilities, and 100,000 shares, NAV = (1,800,000 200,000) / 100,000 = ¬16 per share 2. Cost-Based Approach Cash Flow Analysis Net Present Value (NPV) Formula: NPV = (Net Cash Flow / (1 + r)^t) Initial Investment If NPV is greater than 0 the project is profitable. If NPV is 0 the project just meets its cost of capital. If NPV is less than 0 the project destroys value. Internal Rate of Return (IRR) Formula (implicit): IRR is the discount rate (r) that makes NPV = 0 It represents the projects expected return. If IRR > required rate, the project is attractive. Payback Period Formula: Payback = Initial Investment / Average Annual Cash Flow It tells how many years are needed to recover the initial cost. 3. Market-Based Approach Trading Multiples P/E Ratio (Price-to-Earnings) Formula: P/E = Share Price / Earnings per Share (EPS) A high P/E ratio means high growth expectations. A low P/E might indicate undervaluation. P/S Ratio (Price-to-Sales) Formula: P/S = Market Capitalization / Total Revenue This shows how much investors are paying for each euro of revenue. P/B Ratio (Price-to-Book) Formula: P/B = Share Price / Book Value per Share If the ratio is below 1, the company might be undervalued. EV/EBITDA Ratio Formula: EV/EBITDA = Enterprise Value / EBITDA A lower multiple indicates better value relative to operational profit. 4. DCF (Discounted Cash Flow) Approach Formula: Company Value = (FCF / (1 + r)^t) Where FCF = free cash flow, r = discount rate (can be calculated via CAPM), and t = year. This method is used to value companies based on their expected future cash flows. 5. Gordon & Shapiro Dividend Growth Model Formula: P = D / (k g) Where: P = current stock price D = dividend expected next year k = required rate of return g = constant growth rate of dividends Example: If D = ¬1.296, required return k = 17.5%, and growth g = 8%, P = 1.296 / (0.175 0.08) = approx. ¬13.65 CHAPTER IV FINANCING M&A M&A transactions can be financed through: Self-financing , using retained earnings. Equity financing , by issuing new shares. Debt financing , by issuing bonds or taking out loans. Hybrid financing , especially in LBOs, which mix equity and debt. The choice of financing depends on the company's current financial structure, the cost of capital, and investor expectations. BOND VALUATION ESSENTIALS Formula for bond value: Bond Value = Quoted Value + Accrued Interest Where: Quoted Value = Face Value × (Price / 100) Accrued Interest = (Nominal Rate ×
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Compatible OS 3.0 et ultérieurs.
<<
CHAPTER I M&A BASICS AND TYPES A merger is when two companies voluntarily combine to form a single new entity. The goal is to pool resources, reduce redundancies, and improve overall performance. Example: GlaxoWellcome and SmithKline Beecham merged to create GSK. An acquisition occurs when one company (the acquirer) purchases another (the target). The target becomes a subsidiary or is fully absorbed. Example: Facebook acquired Instagram to expand in mobile social media. Types of M&A include: A horizontal merger involves two companies from the same industry, often competitors. The goal is to increase market share, reduce competition, and generate cost synergies. A vertical merger involves companies from different stages of the supply chain. For example, a manufacturer merging with a distributor. The aim is better control over operations and cost reduction. A conglomerate merger involves companies from unrelated industries. This type of merger is used for diversification and risk reduction. A friendly acquisition occurs with the consent of the target companys management and board. It usually involves cooperative negotiations and mutual benefits. A hostile takeover happens when the targets management resists the acquisition. The acquirer bypasses them and goes directly to the shareholders with a tender offer. Example: Krafts takeover of Cadbury. CHAPTER II DEAL STRUCTURING Deal types include: An asset purchase is when the buyer purchases specific assets (like buildings, patents, or equipment) of the target company. It avoids liabilities but is more legally complex. A stock purchase is when the buyer purchases shares from shareholders, gaining full ownership including liabilities. It is faster but riskier. A merger creates a single legal entity through combining two companies. It can be a true merger of equals or a reconstitution under one entity. A tender offer is made directly to the shareholders, typically at a premium over market price, bypassing the companys board. A leveraged buyout (LBO) is an acquisition financed largely by debt. The acquired companys cash flows are used to repay the debt. A management buyout (MBO) occurs when the current management team purchases the company, often supported by external financing. CHAPTER III COMPANY VALUATION METHODS 1. Asset-Based Approach (NAV) Formula: NAV = (Total Assets Total Liabilities) / Number of Shares Example: If a company has ¬1,800,000 in assets, ¬200,000 in liabilities, and 100,000 shares, NAV = (1,800,000 200,000) / 100,000 = ¬16 per share 2. Cost-Based Approach Cash Flow Analysis Net Present Value (NPV) Formula: NPV = (Net Cash Flow / (1 + r)^t) Initial Investment If NPV is greater than 0 the project is profitable. If NPV is 0 the project just meets its cost of capital. If NPV is less than 0 the project destroys value. Internal Rate of Return (IRR) Formula (implicit): IRR is the discount rate (r) that makes NPV = 0 It represents the projects expected return. If IRR > required rate, the project is attractive. Payback Period Formula: Payback = Initial Investment / Average Annual Cash Flow It tells how many years are needed to recover the initial cost. 3. Market-Based Approach Trading Multiples P/E Ratio (Price-to-Earnings) Formula: P/E = Share Price / Earnings per Share (EPS) A high P/E ratio means high growth expectations. A low P/E might indicate undervaluation. P/S Ratio (Price-to-Sales) Formula: P/S = Market Capitalization / Total Revenue This shows how much investors are paying for each euro of revenue. P/B Ratio (Price-to-Book) Formula: P/B = Share Price / Book Value per Share If the ratio is below 1, the company might be undervalued. EV/EBITDA Ratio Formula: EV/EBITDA = Enterprise Value / EBITDA A lower multiple indicates better value relative to operational profit. 4. DCF (Discounted Cash Flow) Approach Formula: Company Value = (FCF / (1 + r)^t) Where FCF = free cash flow, r = discount rate (can be calculated via CAPM), and t = year. This method is used to value companies based on their expected future cash flows. 5. Gordon & Shapiro Dividend Growth Model Formula: P = D / (k g) Where: P = current stock price D = dividend expected next year k = required rate of return g = constant growth rate of dividends Example: If D = ¬1.296, required return k = 17.5%, and growth g = 8%, P = 1.296 / (0.175 0.08) = approx. ¬13.65 CHAPTER IV FINANCING M&A M&A transactions can be financed through: Self-financing , using retained earnings. Equity financing , by issuing new shares. Debt financing , by issuing bonds or taking out loans. Hybrid financing , especially in LBOs, which mix equity and debt. The choice of financing depends on the company's current financial structure, the cost of capital, and investor expectations. BOND VALUATION ESSENTIALS Formula for bond value: Bond Value = Quoted Value + Accrued Interest Where: Quoted Value = Face Value × (Price / 100) Accrued Interest = (Nominal Rate ×
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