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Mergers and Acquisitions: M&A Valuation I
Then you have landed in the right place.
The overall aim of this crash course into Mergers and Acquisitions is to explore and examine key concepts, methods and techniques used in M&A Valuation process in a summarised and easily digestible format .
This is part 2 (volume 1) of the series. Readers are strongly encouraged to read the part 1 of this series ‘Mergers and An Introduction’ ( This part 2 deals with the mergers and acquisitions (M&A) valuation, determining exactly what the company is worth. It shows how to perform objective analyses, addressing all the parties’ subjective interests in the M&A transactions, and using the practical financial models assessing smooth transaction that would benefit all the relevant parties.
A big part of the corporate world has been emerged from the mergers and acquisitions (M&A). Mergers and acquisitions, are amongst the most strategic and tactical decisions made by the company. M&A transactions could cost the company hundreds of millions or even billions of pounds thus, valuing such investments requires careful consideration and strategic approach on part of the Management and the responsible parties.
Following on the current globalisation trends, more mergers and acquisitions are happening internationally. The main idea behind the mergers and acquisitions is ‘the creation of synergy’. To put this into perspective if two companies want to merge, then, to successfully accomplish this goal, the target (Acquiree company) and the bidder (Acquirer company) must be individually evaluated prior to coming to a sensible decision whether to merge or not. We will go through these soft requirements later in this course series for the management to vet out a plan to deal with this in a sequential manner.
Businesses wish to grow the bottom line profit level fast, thus the business M&As are deemed an effective strategy to achieve this goal expeditiously.
Companies may consolidate (merge with another company) to remove their excess capacity, increase their access of products / services into the market swiftly, acquiring specific technology by simply comparing their own expertise (inhouse team and internal resources) and the time required to build such personalised technology, compared to the time it would take to buy or merge with another company that has already developed such desired technology systems (hardware, software or both). Companies also merge to create new businesses, synergise the resources, streamline the processes and thus improve the group’s performance.
In addition, if the Acquiree company has a healthy revenue and attractive net profit level then, the Acquirer would be interested in doing a ‘merger’ or would even show an interest in ‘acquiring’ such company. Thus uplifting the top-line revenue or the bottom line profitability, this might also become a strong motive behind the mergers and acquisitions.
On a much deeper level, these M&A deals are an important strategic decision for the company to show its desire to grow, to attract the right investors and increase in the company’s stock valuation when the market perceives the corporate M&A strategy as being sound.
M&A requires significant investments, utilisation of time and the resources . To optimise the opportunities and avoid losses one has to bring the right experts on board and to build one’s understanding of the five phases of M&A process. So then we journey into mastering the five phases of M&A process .
Finally, the course ends with Multiple choice questions MCQs to strengthen knowledge on the most important points and topics learned.
The overall aim of this crash course into Mergers and Acquisitions is to explore and examine key concepts, methods and techniques used in M&A Valuation process in a summarised and easily digestible format .
This is part 2 (volume 1) of the series. Readers are strongly encouraged to read the part 1 of this series ‘Mergers and An Introduction’ ( This part 2 deals with the mergers and acquisitions (M&A) valuation, determining exactly what the company is worth. It shows how to perform objective analyses, addressing all the parties’ subjective interests in the M&A transactions, and using the practical financial models assessing smooth transaction that would benefit all the relevant parties.
A big part of the corporate world has been emerged from the mergers and acquisitions (M&A). Mergers and acquisitions, are amongst the most strategic and tactical decisions made by the company. M&A transactions could cost the company hundreds of millions or even billions of pounds thus, valuing such investments requires careful consideration and strategic approach on part of the Management and the responsible parties.
Following on the current globalisation trends, more mergers and acquisitions are happening internationally. The main idea behind the mergers and acquisitions is ‘the creation of synergy’. To put this into perspective if two companies want to merge, then, to successfully accomplish this goal, the target (Acquiree company) and the bidder (Acquirer company) must be individually evaluated prior to coming to a sensible decision whether to merge or not. We will go through these soft requirements later in this course series for the management to vet out a plan to deal with this in a sequential manner.
Businesses wish to grow the bottom line profit level fast, thus the business M&As are deemed an effective strategy to achieve this goal expeditiously.
Companies may consolidate (merge with another company) to remove their excess capacity, increase their access of products / services into the market swiftly, acquiring specific technology by simply comparing their own expertise (inhouse team and internal resources) and the time required to build such personalised technology, compared to the time it would take to buy or merge with another company that has already developed such desired technology systems (hardware, software or both). Companies also merge to create new businesses, synergise the resources, streamline the processes and thus improve the group’s performance.
In addition, if the Acquiree company has a healthy revenue and attractive net profit level then, the Acquirer would be interested in doing a ‘merger’ or would even show an interest in ‘acquiring’ such company. Thus uplifting the top-line revenue or the bottom line profitability, this might also become a strong motive behind the mergers and acquisitions.
On a much deeper level, these M&A deals are an important strategic decision for the company to show its desire to grow, to attract the right investors and increase in the company’s stock valuation when the market perceives the corporate M&A strategy as being sound.
M&A requires significant investments, utilisation of time and the resources . To optimise the opportunities and avoid losses one has to bring the right experts on board and to build one’s understanding of the five phases of M&A process. So then we journey into mastering the five phases of M&A process .
Finally, the course ends with Multiple choice questions MCQs to strengthen knowledge on the most important points and topics learned.
321 pages, Kindle Edition
Published October 31, 2017
6 people are currently reading
2 people want to read
About the author
Sikander Sultan FCA
73 books8 followersSikander Sultan is an experienced Business Adviser by profession and an Author with 400 plus multi-award winning books and courses (topics including productivity, business gowth, career development and memorisation).
He regularly researches into various industries and subjects to take the success concepts from the unrelated industries and adopts them to clients' specific business; resulting in business performance enhancement, and maximising and multiplying of business assets. All of his books and courses are the products of his dedicated research.
For nearly twenty years now (!!), he has been making sharing productivity tips, motivation, business improvement, career development, energy flow and memory enhancement.
In his words, "At the end of the day, all I hope to do is to help make life just that little bit more fun and productive so that we can get where we all need to go...".
In Business, he has experience in Assurance, Advisory, Strategic Growth, Corporate Tax Saving, Accounting, Technology, Marketing, Regulatory and Legal issues affecting the IT, High Tech, Real Estate, Construction, E-Commerce, E-Learning, Energy, Management Consulting, Defence and Government Infrastructure sectors.
He has gained extensive management experience in Ernst & Young and KPMG London; where he regularly advised IT start-ups, FTSE listed blue chip Corporates, Private Equity businesses, Funds, SPVs, Venture Capitalists and high profile clients.
He is a Tech Savvy and passionate in designing algorithms to tackle complex global business platform problems using the 'future technologies today'. He has a very rare ability to immediately grasp the business processes, implications, correlations, applications, opportunities, innovation and vulnerabilities in any given situation.
He is an 'Archaeologist of Growth' as he is dedicated to growing businesses, advancing careers, and multiplying bottom lines exponentially. He is also a qualified ICAEW Chartered Accountant, an MBA, #1 Best Selling Author and an honest trustworthy human being.
He regularly researches into various industries and subjects to take the success concepts from the unrelated industries and adopts them to clients' specific business; resulting in business performance enhancement, and maximising and multiplying of business assets. All of his books and courses are the products of his dedicated research.
For nearly twenty years now (!!), he has been making sharing productivity tips, motivation, business improvement, career development, energy flow and memory enhancement.
In his words, "At the end of the day, all I hope to do is to help make life just that little bit more fun and productive so that we can get where we all need to go...".
In Business, he has experience in Assurance, Advisory, Strategic Growth, Corporate Tax Saving, Accounting, Technology, Marketing, Regulatory and Legal issues affecting the IT, High Tech, Real Estate, Construction, E-Commerce, E-Learning, Energy, Management Consulting, Defence and Government Infrastructure sectors.
He has gained extensive management experience in Ernst & Young and KPMG London; where he regularly advised IT start-ups, FTSE listed blue chip Corporates, Private Equity businesses, Funds, SPVs, Venture Capitalists and high profile clients.
He is a Tech Savvy and passionate in designing algorithms to tackle complex global business platform problems using the 'future technologies today'. He has a very rare ability to immediately grasp the business processes, implications, correlations, applications, opportunities, innovation and vulnerabilities in any given situation.
He is an 'Archaeologist of Growth' as he is dedicated to growing businesses, advancing careers, and multiplying bottom lines exponentially. He is also a qualified ICAEW Chartered Accountant, an MBA, #1 Best Selling Author and an honest trustworthy human being.
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