Mergers and Acquisitions Lets talk a little bit more about accretion and dilution. What are the factors that come into play when we are contemplating an M&A transaction, what are some of the driving forces that determine whether the deal is accretive or dilutive? 33:55 – 34:49 If company A is acquiring company B, and company B has an earnings per share that is higher than company A… what will happen to company A’s balance sheet… will that make the deal accretive or dilutive for company A? 34:50 – 37:21 In an M&A scenario, if an acquisition candidate is growing extremely fast and the two parties cant reach agreement on financial projections. Is there anyway in a deal to bridge the gap? 26:27 – 29:18 When you came up with the 12% acquisition fee and the cost of synergy, did you assume the current traded price was the fair market price? Or did you evaluate it on an individual basis? 13:27 – 15:29 So maybe you can walk through a little bit what happens when a company acquires another company. What happens to the financial statements? 15:41-16:50 Lets say you have a company with $10M in earnings and a million shares outstanding, what is the price to earnings? And what if they aquire a company with only $2M in earnings and must issue 500k shares? 24:35 - 26:35
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