2. Recessions may very well be the greatest investment opportunities of a person's lifetime. Economists officially define a recession as two consecutive quarters of negative growth in gross domestic product (GDP). The National Bureau of Economic Research cites "a significant decline in economic activity spread across the economy, lasting more than a few months" as the hallmark of a recession. A recession generally fat trimming for companies, from which they should emerge stronger, and that's good news for investors. companies performing well in a recession will also perform well in a recovery RECESSION
3. Undervalued Securities Lower Home Prices for First-Time Buyers Consumer Bargains Lower Interest Rates Stimulus Opportunities Debt Forgiveness or Reduction Firing/layoffs of incompetents (better promotion prospects) 7 OVERLOOKED BENEFITS OF THE RECESSION
5. Improve liquidity position Search for new sources of income Bring immunity to business for a long-term survival and growth BEST STRATEGY TO COUNTER RECESSION
21. Valuing the Acquisition: Method used Enterprise value multiple. EV represents a company’s economic value, the minimum amount someone would have to pay to buy it outright. EV = Market Capital + Preference Stocks + Minimum interest +long term debt – cash equivalent. EV = 3.5 billion + 0 + 26 billion + 1308 million – 871 million VALUATION
24. On 17 Oct, 2006 Tata’s bid was 455 pence per share (Normal rate 390 pps).
25. Tata Steel, the winner of the auction, declared a bid of 608 pps surpassing the Brazilian steel maker CSN (603 pps).
26. The combined entity became the world’s 5th largest steelmaker of the world.FINAL DEAL
27.
28. Tata had a strong retail and distribution network in India and SE Asia. Hence this would bring a combination of high quality developed and low cost high growth markets.
38. Acquisition is strong pattern of investment Recession facilitates Reverse Takeover phenomena Cost advantage of Bear market In long term, high yields and capital appreciation occurs Synergy and Global Market entrance CONCLUSION