The document discusses business valuation methods like the market approach, comparable transactions approach, and sum-of-parts method. It then discusses the synergy trap that acquirers can fall into when pursuing acquisitions based primarily on projected synergies. Acquirers often overpay for acquisitions due to unrealistic synergy projections, setting high performance targets that acquired companies struggle to meet. Studies find that most acquisition programs fail financially due to paying too high a premium without considering integration challenges. The document emphasizes that acquirers must quantify required synergies upfront to justify paying acquisition premiums.
This presentation provides practical recommendations for sales leadership to drive sustainable sales results in this extremely tough selling environment
This presentation provides practical recommendations for sales leadership to drive sustainable sales results in this extremely tough selling environment
Most books and templates for building a business plan are overwhelming in the information they need. Learn to filter down to the necessary planning items you need to run your business, a practical business plan that you will use.
Multiple Arbitrage is one of the few Free Kicks you get in Business. This guide explains why it works so well, how its applied to Roll-ups going into an IPO, and why some Roll-ups Fail.
This is the project in development right now to embrace the online business with our brand, worldwide. I hope could be usefull for you too.
Let me know your opinion please, it could be usefull for me too.
m
Can procurement really add value to logisticsPetra Smith
With many economists making bleak predictions regarding the ongoing economic crisis, optimising spend is a priority for many businesses. This has led to increased pressure on numerous functions, including logistics and supply chain, to work with procurement to maximize efficiency and drive company growth. Despite this, there remain many who are unconvinced by procurement's ability to work with logistics and the actual benefits this collaboration can deliver.
Most books and templates for building a business plan are overwhelming in the information they need. Learn to filter down to the necessary planning items you need to run your business, a practical business plan that you will use.
Multiple Arbitrage is one of the few Free Kicks you get in Business. This guide explains why it works so well, how its applied to Roll-ups going into an IPO, and why some Roll-ups Fail.
This is the project in development right now to embrace the online business with our brand, worldwide. I hope could be usefull for you too.
Let me know your opinion please, it could be usefull for me too.
m
Can procurement really add value to logisticsPetra Smith
With many economists making bleak predictions regarding the ongoing economic crisis, optimising spend is a priority for many businesses. This has led to increased pressure on numerous functions, including logistics and supply chain, to work with procurement to maximize efficiency and drive company growth. Despite this, there remain many who are unconvinced by procurement's ability to work with logistics and the actual benefits this collaboration can deliver.
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
3. Methods
• Market Approach
– Current Market Prices, Historical Market
Prices, Price to Earnings, Price to Revenue,
Price to Book Value, Price to Enterprise Value
• Comparable Transactions/Relative
Valuations
– Comparable International and Domestic
Transactions.
• Sum-of-parts Method
September 13, 2009 Corporate Restructuring | Session 4 3
4. Market Approach
• Key issues
– Representative comparative companies
– Time period
– Variables to be considered
• Among the common variables used are
– P/E, P/BV
– M-Cap/Revenue, M-Cap/EBIDTA
• Important to compare apples to apples
September 13, 2009 Corporate Restructuring | Session 4 4
5. Comparable Transactions
• Key issues
– Representative comparable transactions
– Time of consummation
– Applicable markets and their dynamics
• Usual variables
– EV/Revenue, EV/EBIDTA
– P/E, P/BV
• Important to segregate and eliminate company
specific premiums and discounts in the valuation
September 13, 2009 Corporate Restructuring | Session 4 5
6. Sum Of Parts Method
Land Parcel 100 acres EPC Company With All
Own Equipment
Toll Road Under BOT New Venture Into
Generating Toll Fees Nuclear Energy
September 13, 2009 Corporate Restructuring | Session 4 6
7. Sum Of Parts Method
Land Parcel 100 acres EPC Company With All
Own Equipment
Asset Valuation (FMV)
Asset Valuation (FMV)
Revenue Generation
Potential Add Company
Premium/Discount
Toll Road Under BOT New Venture Into
Generating Toll Fees Nuclear Energy
Discounted Cash Flow Negotiated Depending
on Stage of
Development
September 13, 2009 Corporate Restructuring | Session 4 7
8. Sum Of Parts Method
Land Parcel 100 acres EPC Company With All
Own Equipment
Asset Valuation (FMV)
Asset Valuation (FMV)
Revenue Generation
Add SCRP, Liquidity
Potential Add Company
Premium/Discount
Premium & New Venture Into
Toll Road Under BOT Control
Generating Toll Fees Nuclear Energy
Premium Depending
Discounted Cash Flow Negotiated
on Stage of
Development
September 13, 2009 Corporate Restructuring | Session 4 8
10. The Synergy Trap
• Essentials for an Acquirer:
– Should not pay “too much”
– The deal should make “strategic sense”
– Corporate cultures need to be managed carefully
• The problem is:
– How do we predict up front whether a company is
overpaying for an acquisition?
• Acquisitions are capital budgeting decisions
September 13, 2009 Corporate Restructuring | Session 4 10
11. The Synergy Trap (Contd.)
• Dreams of synergy may lead to lofty acquisition
premiums.
• A quantifiable post-merger challenge is embedded
in the price of each acquisition. Higher the premium,
greater is the challenge.
• Using the acquisition premium, we should be able to
calculate what the required synergies must be.
• This calculation may often show that the required
performance improvements are far greater than what
any business in a competitive industry can reasonably
expect.
September 13, 2009 Corporate Restructuring | Session 4 11
12. The Synergy Trap (Contd.)
• A McKinsey & Co. study found that 61% of the
acquisition programs were failures because the
acquisition strategies did not earn a sufficient return
on the funds invested.
• A BCG study found that during the pre-merger stage,
80% of companies did not even consider how the
acquired company would be integrated into
operations following the acquisition!!
• Thus, a bad acquisition is one that does not earn back at
least its cost of capital.
September 13, 2009 Corporate Restructuring | Session 4 12
13. The Synergy Trap (Contd.)
• When an acquirer pays acquisition premium,
he/she has two business problems to solve:
– to meet the performance targets the market already expects;
– to meet the even higher targets implied by the acquisition
premium.
• Hence, Synergy can be defined as “increases in
competitiveness and resulting cash flows beyond what
the two companies are expected to accomplish
independently”
September 13, 2009 Corporate Restructuring | Session 4 13
14. The Acquisition Game
• Acquisition is a business gamble where the acquirer
pays up front for the right to control the assets of the
target firm and earn, hopefully, a future stream of
cash flows.
• But while the acquisition premium is known with
certainty, the payoffs are not.
• NPV (of playing the acquisition game) =
Synergy- Premium.
September 13, 2009 Corporate Restructuring | Session 4 14
15. Losing In The Acquisition Game
• When Novell acquired WordPerfect for $1.4bn, they
did not calculate what WordPerfect was already
required to accomplish given the first bid for
WordPerfect by Lotus for $700mn.
• Novell lost $550mn of market value on
announcement of acquisition.
• Microsoft has, since then, continued to gain market
share and ultimately Novell sold WordPerfect (less
than two years after acquisition) to Corel at a loss of
over $1.2bn!
September 13, 2009 Corporate Restructuring | Session 4 15
16. Empirical Evidences of Acquisitions
• Some studies concluded that related acquisitions were
better than unrelated acquisitions;
• Some show that unrelated acquisitions were better
than related acquisitions; and
• There is a third group which show that the
relationship just did not matter!
• But most of these researchers assumed that
acquisition prices are highly correlated with potential
value.
September 13, 2009 Corporate Restructuring | Session 4 16
17. Problems with Past Research
• Because many researchers have assumed that the
premiums represent fair prices in the beginning, a
failed acquisition was dubbed as the result of
“managerial problems” such as culture clashes, leadership
failures etc.
• The practical problem with this approach is that it
does not realistically address whether the acquisition
strategy could have worked even in the absence of
implementation problems.
• It is wrong to assume that if the management
problems were not there, all or any of the synergy
promised by the premium would occur.
September 13, 2009 Corporate Restructuring | Session 4 17
18. Post-Acquisition Integration
• Nelson and Lagges, Principals with A. T. Kearney
advised, “During the first year, it is important to combine
two cultures and organizations, but it is fatal to get bogged
down in heavy operations integration. Start out by picking the
low hanging fruits.”
• However, it is observed that for an average
acquisition premium of over 40%, it is crucial to
understand that the possible performance
improvements should also be worked out initially.
This is because each year of delay would cost heavily!
September 13, 2009 Corporate Restructuring | Session 4 18
19. Justifying Acquisition Premium
• The synergy (or Required Performance
Improvement) as indicated by the acquisition
premium has to be estimated up front.
• The process of such estimation would show
how difficult it is to justify the premium!
• Any delay in realizing synergy would further
put the acquisition premium at risk.
September 13, 2009 Corporate Restructuring | Session 4 19