ABC Power is an Energy manufacturer in Saudi Arabia (fictitious example). It is going to hire a Merger and Acquisition advisor, ABC Power has SAR 900 million in revenue, $90 million in EBITDA, and SAR180 million in debt. XYZ Power is a KSA Energy manufacturer. XYZ Power (Target Company) is being sold at a possible price of SAR 225 million. Albilad Capital proposes to act as ABC's M&A advisor. Goldman Sachs also wants to act as ABC's M&A advisor. Goldman Sachs told ABC Power management that it will be a better advisor than Albilad Capital because: .  . More M&A experience (# 1 in global league tables) More M&A experience in the energy sector Larger M&A staff  More valuation experiences Industry knowledge with an eight-person group of equity analysts in New York, who specialize in writing research on energy companies Fee structure of SAR 450,000 upfront and 1% success fee Ability to help ABC Power raise the SAR 225 million purchase price . Question 1: Pretend you are trying to convince ABC Power that Albilad Capital will provide better advice than Goldman Sachs. What are your arguments? Question 2: Pretend you are the CEO of ABC Power. What kind of questions will you ask Albilad Capital? Why is Albilad Capital better than Goldman for the. XYZ Power deal? 

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Question 1 Arguments for Albilad Capital providing better advice than Goldman Sachs 1 Local Expertise Albilad Capital is based in Saudi Arabia and has a deep understanding of the local market dynamics ... View the full answer