CHAPTER 26 MERGERS‚ LBOs‚ DIVESTITURES‚ AND HOLDING COMPANIES Please see the preface for information on the AACSB letter indicators (F‚ M‚ etc.) on the subject lines. True/False Easy: (26.1) Synergistic merger FU Answer: a EASY 1. In a merger with true synergies‚ the post-merger value exceeds the sum of the separate companies’ pre-merger values. a. True b. False (26.1) Sources of synergy FU Answer: a EASY 2. Synergistic benefits can arise from a number of different
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FIN310 - Venture Capital - Investing in early stage growth companies – Lecture 1 Brendon Blacker Monday 24 March Introduction to your guest lecturer Brendon Blacker Vice President Macquarie Capital Sydney STRICTLY CONFIDENTIAL 2 Agenda Lecture 1 – Monday 24 March 2014 1. Introduction to Macquarie Capital Lecture 2 – Monday 31 March 2014 — Review questions — Quick recap 2. Introduction to venture capital — What is venture capital? How does it work? 3. Investing in early-stage growth companies
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Industry Private Equity Information Sources Required Reading Brazos Partners The CoMark LBO Case Due Note on Valuation in Private Equity Settings (HBS 9-297-050) Case 4 Brazos Partners The CoMark LBO The partners of a new midmarket buyout fund are working on a buyout of a closely held modular building company. Although originally structured as a stock deal‚ they have realized that an asset deal would be preferable from their point of view and are trying to determine what benefits it might hold for
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Investment Company (SBIC) financing | 9. A credit union is an example of a(n): b. | privately held corporation | | | 10. An Acquisition agreement is one firm’s purchase of the property and obligations of another company. [And a leveraged buyout (LBO) generally entails employees‚ management‚ or a group of investors purchasing a business organization primarily through borrowing . . .]. 11. A FRANCHISE pertains to the
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II.Key Issues2 III.Recommendations6 IV.References7 I.Introduction Hospital Corporation of America (HCA) is propriety‚ hospital management company founded in Nashville‚ Tennessee in 1968 with only one‚ 150-bed hospital and then grew to become the nation’s largest hospital management company. As of 1981‚ HCA owned or managed 349 hospitals in the United States and overseas. During the 1970s‚ HCA achieved its growth by acquisition of existing hospitals and construction of new ones. During the period
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with purchase prices exceeding one billion dollars was 27 of 3300 deals in 1986 and 36 of 3000 deals in 1985 (Grimm‚ 1985). There were only seven billion-dollar plus deals in total‚ prior to 1980. In addition to these takeovers‚ mergers‚ and leveraged buyouts‚ there were numerous corporate restructurings involving divestitures‚ spinoffs‚ and large stock repurchases for cash and debt. The gains to shareholders from these transactions have been huge. The gains to selling-firm shareholders from mergers
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response to a crisis such as positioning the company to be more competitive‚ survive a currently adverse economic climate‚ or poise the corporation to move in an entirely new direction or major change in the business such as bankruptcy‚ repositioning‚ or buyout. Restructuring may also be described as debt restructuring and financial restructuring. Financial restructuring It may take place in response to a drop in sales‚ due to a sluggish economy or temporary concerns about the economy in general. Actions
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Strategic Acquisitions Involving Common Stock Acquisitions and Capital Budgeting Closing the Deal Mergers and Other Forms of Corporate Restructuring Takeovers‚ Tender Offers‚ and Defenses Strategic Alliances Divestiture Leveraged Buyouts What is Corporate Restructuring? Any change in a company’s: 1. Capital structure‚ 2. Operations‚ or 3. Ownership that is outside its ordinary course of business. So where is the value coming from (why restructure)? Why Engage in Corporate
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Hedge Funds: Locusts or Bees? Literature Review Within the scope of the study program General Management (B.Sc.) EBS Oestrich-Winkel Universität für Wirtschaft und Recht TABLE OF CONTENTS LIST OF ABBREVIATIONS ............................................................................................................................. 3 1. INTRODUCTION ...........................................................
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Introduction to Business Combinations and the Conceptual Framework BRIEF OUTLINE 1.1 Introduction 1.8 Determining Price and Method of Payment 1.2 Nature of the Combination 1.9 Alternative Concepts of Consolidated 1.3 Business Combinations Financial Statements 1.4 Business Combinations: Historical Perspective 1.10 FASB’s Conceptual Framework 1.5 Terminology and Types of Combinations 1.11 FASB Codification Project 1.6 Takeover Premiums 1.12 Appendix A: Evaluating Firm Performance
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