Mastering M&A Valuation
11 Questions
2 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

Which term represents the price paid for the seller's Net Assets?

  • Offer Price per Share
  • Purchase Enterprise Value
  • Transaction Value
  • Purchase Equity Value (correct)

Which term represents the price paid for just the seller's Net Operating Assets?

  • Purchase Equity Value
  • Transaction Value
  • Offer Price per Share
  • Purchase Enterprise Value (correct)

Which value is closest to the 'true price' in an M&A deal?

  • Offer Price per Share
  • Purchase Enterprise Value (correct)
  • Purchase Equity Value
  • Transaction Value

Which metric is not necessarily the most relevant for financial modeling purposes in acquisitions of public companies?

<p>True Price (A)</p> Signup and view all the answers

Which option is the most common outcome when the buyer has to deal with the seller's Debt?

<p>Refinance the Debt (A)</p> Signup and view all the answers

What happens to the effective acquisition price when the buyer repays the seller's Debt in full?

<p>The price increases (B)</p> Signup and view all the answers

What happens to the effective acquisition price when the buyer receives the seller's Cash in an acquisition of a public company?

<p>The price decreases (C)</p> Signup and view all the answers

Which value is often the more relevant driver in a merger model?

<p>Purchase Equity Value (A)</p> Signup and view all the answers

What does the Combined Interest Income represent in a merger model?

<p>Buyer's Interest Income + Seller's Interest Income (D)</p> Signup and view all the answers

What does the Combined Interest Expense represent in a merger model?

<p>Buyer's Interest Expense + Seller's Interest Expense (A)</p> Signup and view all the answers

What does the Purchase Equity Value result in changes on?

<p>Combined Income Statement (D)</p> Signup and view all the answers

More Like This

The New Deal Flashcards
5 questions

The New Deal Flashcards

BrainiestDouglasFir avatar
BrainiestDouglasFir
The New Deal in U.S. History
11 questions
Pharaohly Big Deal - Chapter 4 Quiz
10 questions
Stage 4 Chapter 5: A Pharaohly Big Deal
10 questions
Use Quizgecko on...
Browser
Browser