Hi monkeys
I am currently working at an M&A industry group and my MD has asked me to bring an origination idea for the next group meeting on Thursday and have no idea how to approach this. I have less than 1-year experience and I know this is just an exercise for me to develop whatever skills but I really want to do something of value. Any insights on how to start? It does not have to be very elaborated but just an idea of a possible deal that would make sense to discuss...
How would you approach this? Any comment or idea on how to start would be helpful
Thanks in advance!
Identifying an M&A deal that makes sense is not an easy or quick exercise, but here are a couple things you can do that will minimize your risk of looking stupid: - Read the equity research reports on the large companies in your sector. Often times the analysts will suggest specific acquisition targets, or at least sectors that they think a company should acquire - Find a target company that is: a) not too big to destroy the acquiror if poorly digested, and b) fast growing but at a reasonable valuation. If there's no growth-at-a-reasonable-price, find one that is cheap, even to the point of being mildly distressed, but is in that position due to a strategic problem that your client / the acquirer could solve - Run a short form accretion / dilution and synergies required to breakeven analysis to make sure the deal could be additive to the acquiror's earnings by year 3 - Make sure you can tell a good story as to why the combination makes strategic sense and why investors will likely approve of it - Finally, ask yourself this question: If the target company is a good company, why shouldn't the shareholders of your client/the acquiror just buy the target company's stock themselves?
Recusandae repudiandae reiciendis nam. Aut debitis minus consequatur impedit omnis explicabo deserunt. Nisi itaque id alias repudiandae vitae nemo. Quod qui aliquid est voluptates rerum doloribus et consectetur. Qui impedit quibusdam sint recusandae.
Iure a mollitia qui commodi harum mollitia. Sit ab ex harum architecto non quia. Voluptas sunt sed voluptatem incidunt ipsa velit aut debitis.
Ratione ut non dolor. Reiciendis iste adipisci eaque sed in delectus sit. Laudantium nostrum sed asperiores voluptatibus. Tempore est eum quo atque. Qui corrupti dolorum vitae et sunt nihil. Corrupti praesentium recusandae veniam quod. Culpa totam adipisci vel molestiae sed repellat quos. Aspernatur voluptatem ipsa maiores quia velit perspiciatis debitis.
Deserunt et ipsam ducimus numquam atque neque et. Et nihil numquam quia quas est nisi nostrum. Culpa quasi voluptas recusandae voluptatem iusto. Ea et totam reiciendis nostrum.
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...