Mergers & Acquisitions
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In the Core Merger Modelling Topics module, the models you build concern public listed companies either as acquirors or as targets. What are the effects on a model when the target is a private (not listed company) or a Business Unit that a corporation wants to dispose. For example let's assume the target is a 100% subsidiary of a large corporation. The large corporation wants to dispose this subsidiary and it is the perfect LBO candidate. How are we going to treat this transaction? In any calculation concerning Equity are we going to use the number of shares with their nominal value? i.e the target has 100k shares with a nominal value of $5. Will the premium be calculated on the nominal value? What will happen in the case where a large corporation wants to divest from a B.U which has no legal entity form. How do we treat such transaction from a model point of view, when we have no equity. It woulD be great if you could explain one LBO and one merger example. Thank you in advance for your prompt response. Read More