Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
„Purchase
Value of
price“
improve
Value of ments
Target to
Stand
Acquirer Valone
value of
target
NPV to acquirer shareholders NPV of
financing
issues
Value of
synergies
Value of Value of
„Purchase
price“
Target to improve
ments
Acquirer´s
Share- Stand
alone V
holders value of
target
Where was „effective cost“?
The „purchase price“ minus the NPV of
financing is the „effective cost“
Real world situations
• Debt plus warrants or equity of private firm
(like John Case)
• Debt may be cheap to „make it up on equity“
• Subsidized loans
• Using overvalued stock to make acquisitions