I want to start writing a weekly post on Linkedin that lightly analyses M&A activity - particularly
Question:
I want to start writing a weekly post on Linkedin that lightly analyses M&A activity - particularly in the resources/energy/commodities sector but in other sectors as well.
Can you please build a spreadsheet to assess the relative value of the merger or acquisition?
From the top of my head it should include items such as:
1. Value the target company or asset as standalone. Incorporating things such as sales growth, EBIT margins, operating tax, working capital requirements, capital expenditures etc
2. Then looking at the value of synergies that can be realised. Incorporating items such as sales (volume and price), EBIT margin (product mix and overhead reductions), operating tax (tax efficiency, tax losses), working capital and vendor relationships capital expenditures and efficiencies.
3. Finally assess the value created by the merger or acquisition?
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher