wk 5 - M&A continued Flashcards
1
Q
How many phases in an M&A deal - what are they
A
3:
- Pre-purchase (ex-ante)
- Purchase (in medias res)
- Post Purchase (ex-post)w
2
Q
What occurs in the Pre-purchase process of an M&A deal
A
Decide whether to initiate deal process
Complete search and screen steps
Deal is only justified if there’s +ve synergies
Massive investment for risky payoff
Need to estimate future cashflows
3
Q
How do you estimate the value of an M&A deal
A
Net Present Value (NPV)
4
Q
A
