a) Integrate corporate culture b) Integrate people c) Integrate organization system
a) Do M&A in specific region b) Do M&A within specific industry c) Do M&A within your supply chain
a) Preparation Do self-analysis Set M&A objectives Screen target companies Investigate in detail targeted companies Do valuation on targeted companies b) Implementation Prepare M&A procedure Negotiate and sign the contract a) Completion Complete the registration Integrate the newly established company
a) Improvement of the stakeholders’ interest b) Tax burden c) Loss of control power
a) Sufficiency of cash b) Capital structure c) Dilution extent to net income d) Dilution of control power
a) Cash payment The buyer pays cash to obtain the control power of the newly established foreign invested enterprises. This is the most widely used M&A payment method in China nowadays and it’s also the simplest one. b) Stock payment The buyer pays its newly issued stocks to obtain the control power of the newly established foreign […]
Under this method, the liquidation value of each asset of the company is added together to arrive the liquidation value of the company. This method is only applicable to circumstances where the objective of the merged company is to sell its asset.
Under this method the value of the company is the cost to incur for rebuilding the company under current condition. There are threes methods to calculate the value: a) Replacement Cost Method: Replacement Value = Quantity of the material, labor and expenses incurred * Prevailing price b) Commodity Index Method: Replacement Value = Original value […]
Book Value Method relies on the accounting record, which equals to total asset minus total liability. The advantage of this method is that it’s reliable and easy to calculate and understand. The drawback of this method is that it ignores the fluctuation of asset price and future profit-making capability of the company.
The concept and steps of the Comparable Transaction Method are similar to those of Comparable Company Method, except that this method uses similar M&A transactions to compare. The disadvantage of the method is that sometimes it’s difficult to find out similar M&A transactions.