If for an M&A process, 3 different companies make the same offer e.g. EV of $Xm, how do you compare the offers? How can the offers differentiate?
One thing may be the financing, e.g. was offer is all-cash, where another is 50-50 (cash and equity). Heard some people say the make of working capital is another reason - what does this mean?
Would appreciate other thoughts as well.
Thank you!
| +434 | Is UBS really that bad? | 80 | 1h |
| +268 | Which Offer to Accept: UBS Analyst Role or Part Time Cashier at the Local Taco Bell | 32 | 22h |
| +263 | Investment Banking is Divine | 41 | 3h |
| +220 | Another $115bn Mega deal for these banks. Congrats! | 47 | 37m |
| +111 | Useless associates | 26 | 3h |
| +73 | AI is insane | 21 | 1h |
| +71 | Is Houston SA 28 recruiting already over? | 40 | 1h |
| +65 | Roku-Fox Deal - UBS Misses Out on yet another deals after years chasing this deal | 19 | 1h |
| +59 | FIG Pigeonholes you - is it true? | 23 | 12h |
| +58 | Differences in Restructuring Teams? | 25 | 36m |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
1) The EV to Equity value bridge - What do they consider debt like items, pensions...
2) Payment conditions: All upfront? Cash & Stock? Earn outs?
3) Objectives in the company: Are they willing to invest a lot? Are they going to save jobs? Is the mngmt team continuing?
4) Are they our competitors? Do we want sponsors or industrials to manage this company?
5) Prior relationships: Do we prefer company X to acquire the company or company B?
These are some of the things that I have seen as drivers taken into account in similar decisions
Thank you very much. Could you explain the EV to Equity value if you don't mind? Thank you.
Vel esse repudiandae labore fuga. Nam suscipit vel quo sint et necessitatibus nobis sunt.
Et assumenda aut quisquam laborum dolores. Sit illum fugiat recusandae iste. Nostrum voluptas voluptatibus sit magnam magni.
Vel natus nam reiciendis vero doloremque. Sed quo a ex. Dolorem natus ad culpa et beatae qui tenetur.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...