The revised edition
of the book Mergers and Acquisitions: Strategy, Valuation, Leveraged Buyouts,
and Financing, 2nd ed addresses the various due diligence concepts in M&A
by using realistic examples, real-life case studies, user-friendly models of
valuation, leverage buyout (LBO) models and models for deal performance
analysis. The book fills the gap in contemporary finance wherein it focuses
on theory along with practical usage and application in M&A. This edition
comprises 23 chapters categorized into 6 units, which discuss the complete
framework of M&A comprehensively.
About the Author
Dr. Sheeba Kapil has authored several books on Corporate Finance and
published research papers dealing with Corporate Finance
TABLE OF CONTENTS
Preface
Acknowledgements
Unit I: Strategic Aspects of M&A
1 M&A: Trends and Waves 3
1.1 Introduction
1.2 Business Snapshot: Microsoft and LinkedIn M&A
1.3 Merger Waves
1.4 Indian M&A Scenario
2 Understanding M&A
2.1 Introduction
2.2 Types of Mergers
2.3 Merger Motives
3 M&A Strategy and Strategic Fit
3.1 Understanding Strategy
3.2 Successful Strategies
3.3 Strategic Analysis
3.4 Strategy to Create Competitive Advantage
3.5 Generic/Business Level Strategies
3.6 Cooperative Strategies
3.7 Corporate Level Strategies
3.8 Strategy Implementation
3.9 Understanding Strategic Fit
3.10 Strategic Fit and Synergy Gain
3.11 Synergy Gain and Added Value
3.12 M&A Tool for Corporate Growth Strategy
3.13 M&A: Strategic Investment Choice for Inorganic Growth
3.14 M&A Strategic Process
4 Corporate Restructuring and M&A
4.1 Introduction
4.2 Organizational Restructuring
4.3 Financial Restructuring
4.4 Portfolio Restructuring
4.5 Mergers and Acquisitions as an Inorganic Growth Tool
5 Identifying Opportunities in M&A: Buy Side and Sell Side
5.1 Introduction
5.2 Buy-Side M&A
5.3 Financing Options for Buyer
5.4 Fairness Opinion
5.5 Definitive Agreement
5.6 Buy-Side Valuation and Deal Analysis
5.6 Sell-Side M&A
5.7 Factors Affecting Sell-Side M&A
5.8 Sell-Side Process
5.9 M&A Strategic Buyer
5.10 Marketing Plan for Target
6 M&A: Empirical Studies
6.1 Introduction
6.2 Large Global Deals
6.3 Hostile M&As
6.4 Regional Trends and Insights
6.5 Cross-Border M&As
6.6 M&A Activities in Emerging Markets: Comparative Study of India and
China
6.7 Sectoral Analysis of M&A Trends
6.8 Analysis of Empirical Studies on M&A Motives and Performance
Unit II: Legal Issues and Framework
7 M&A: Legal and Regulatory Framework
7.1 Introduction
7.2 M&A: Regulatory Framework
7.3 Merger / Amalgamation
7.4 Acquisition / Takeover
7.5 Cross-Border M&A
7.6 Foreign Direct Investment
7.7 Foreign Portfolio Investment
7.8 Foreign Venture Capital Investments
7.9 Pre-Agreement and Share Purchase Agreement
8 M&A: Takeover Defenses
8.1 Introduction
8.2 Probability of Takeover
9 M&A Accounting and IFRS-3
9.1 Introduction
9.2 Purchase Method
9.3 Pooling Method
9.4 New Accounting Norms (Post 2001)
9.5 Consolidation Process
10 Foreign Direct Investment and M&A
10.1 Introduction
10.2 Defining FDI
10.3 Rationale for FDI
10.4 Costs of FDI
10.5 Forex Rate Volatility, BOP, and FDI
10.6 Determinants of FDI
10.7 FDI in India
10.8 Advantages of FDI
10.9 FDI and Asian Countries
Unit III: Valuation and M&A
11 Concepts in Business Valuation
11.1 Introduction
11.2 Components of DCF
11.3 Valuing Firm with DCF
11.4 Unlevering Beta and Firm Valuation
12 Valuation by Multiples
12.1 Introduction
12.2 Steps in Comparable Analysis
12.3 Equity Value
12.4 Enterprise Value
12.5 EBITDA
12.6 Gross Profit Margin
12.7 Growth Metric
12.8 Credit Profile
12.9 Precedent Transaction Analysis
13 Business Valuation and Consideration Paid in M&A
13.1 Introduction
13.2 The Historical Cost Approach
13.3 The Residual Income Approach
13.4 The Multiples Approach
13.5 The Dividend Discount Model
13.6 The Discounted Cash Flow Approach
13.7 Economic Value Added
13.8 Consideration in M&A
Unit IV: Advance Topics in M&A Valuations
14 Brand Valuation and M&A
14.1 Introduction
14.2 M&A and Brand Valuation
14.3 Brand Valuation Methods
14.4 IFRS and Brand Valuation
14.5 Intangible Assets
14.6 Value Drivers for Valuation
15 Private Equity and Start-Up Valuation
15.1 Introduction
15.2 Convertible Debt for Start-Ups
15.3 Equity Series Round
15.4 Pre- and Post-Money Valuations
15.5 Future Dilution
15.6 Option Pool
15.7 Preferred Stock and Liquidation Preference
16 LBO Economics and Valuation
16.1 Introduction
16.2 LBO Economics
16.3 LBO Valuation
Unit V: Financing Aspects
17 Financing Options in M&A
17.1 Introduction
17.2 Normal Equity
17.3 Differential Voting Equity
17.4 Preference Shares
17.5 Debt Financing
17.6 Retained Earnings / Cash Surplus
17.7 Eurobonds
17.8 Foreign Bonds
17.9 Depository Receipts
17.10 External Commercial Borrowings (ECBs)
17.11 Equipment Financing
17.12 Leasing and Hire Purchase
18 Leveraged Buyout
18.1 Introduction
18.2 LBO Sponsors
18.3 LBO Mode of Target Acquisition
18.4 Criteria for Selecting LBO Candidates
18.5 LBO Capital Structure
18.6 Concept of Financial Leverage and Risk
18.7 History of LBOs
18.8 Role of Private Equity Investors
18.9 Theories of LBOs
18.10 Exit Strategies for LBO
18.11 LBOs in India
19 Private Equity and M&A
19.1 Introduction
19.2 Functions of a PE Firm
19.3 Structure of a PE Firm
19.4 Private Equity and Hedge Funds
19.5 PE Investment Strategy
19.6 Types of Private Funds
19.7 Regulation of PE Market
19.8 Factors Responsible for Private Equity Growth
19.9 PE in India
20 Investment Banks and M&A
20.1 Introduction
20.2 Investment Bank Structure
20.3 Investment Bank Functions
20.4 Investment Bank Fee
20.5 Regulation of Investment Banks
20.6 Investment Banks in India
21 Hedge Funds and M&A
21.1 Introduction
21.2 Hedge Funds and M&A
21.3 Characteristic Features of Hedge Funds
21.4 Growth of Hedge Funds
21.5 Hedge Fund Indices and Databases
21.6 Types of Hedge Fund Investors
21.7 Hedge Fund Investment Strategies
Unit VI: Additional Topics in M&A
22 Post-Merger Integration
22.1 Introduction
22.2 Factors Affecting Integration
22.3 Functional Integration
23 Corporate Governance and M&A
23.1 Introduction
23.2 Corporate Governance Mechanisms
23.3 Corporate Governance Models
23.4 Corporate Governance and M&A
23.5 Mergers and Acquisitions: Approaches of Corporate Governance
23.6 Corporate Governance Issues: Views of Acquirers and Targets
23.7 Corporate Governance and M&A: Indian Context
Index |