Kerstin Dodel

Private Firm Valuation and M&A (eBook, PDF)

Calculating Value and Estimating Discounts in the New Market Environment

• Format: PDF

Produktbeschreibung

A comprehensive guide to the changing face of valuation in private firm M&A transactions Based on the author's extensive professional experience as well as her rigorous academic research, this book describes a more sensible approach to using discounts in private company valuations and provides readers with a deeper appreciation for the need to weigh a much broader range of influences on value in the M&A process. Does the idiosyncrasy of family-owned business influence transaction multiples? What of regional market differences and differing market environments over time? How do you estimate the influence of the subprime on the transaction process? With the help of fascinating case studies drawn from an eclectic array of M&A transactions, including a beauty contest, author Kerstin Dodel answers those and other central questions about the M&A process. Among other things, she vividly demonstrates that the ultimate price paid in such a transaction reflects not only a target company's unique characteristics, but the varying motivations and expectations of each of the participants within the context of a competitive M&A process. * Dodel has an extensive background in the profession and her research draws upon rigorous scholarship and her years of working at Credit Suisse First Boston, Deutsche Bank, and other leading global financial institutions * Emphasis is given to the post credit crunch environment, and responding to regulators' increasing rejection of over-simplified procedures for firm valuation

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Produktdetails

• Verlag: John Wiley & Sons
• Seitenzahl: 208
• Erscheinungstermin: 30. Oktober 2013
• Englisch
• ISBN-13: 9781119960485
• Artikelnr.: 39944653

Autorenporträt

Kerstin Dodel (Munich, Germany) is VP at Duff & Phelps GmbH, having held former posts at Deutsche Bank and Credit Suisse First Boston. She is on the Board of the German CFA Society and lectures at their professional events on a regular basis.

Inhaltsangabe

List of Exhibits ix Preface xiii 1 Introduction 1 1.1 Private Firms -
Setting out their Stall 2 1.1.1 Introduction to SMEs in Different Countries
2 1.1.2 Introduction to Family Firms in Different Countries 3 1.2 The
Relation Between the Two Dimensions of Private Firms 5 1.3 A Note on
Germany and the German Mittelstand 5 1.3.1 Mittelstand vs. Family Firm 6
1.3.2 Mittelstand vs. SME 7 2 The M&A Transaction with Private Firms - A
Process Analysis 9 2.1 The M&A Transaction - the Process and Important
Elements 10 2.1.1 Preparation Phase 11 2.1.2 Marketing Phase 11 2.1.3 Due
Diligence Phase 12 2.1.4 Negotiation Phase 13 2.2 Question 1: Which Factors
Influence the M&A Process and the Transaction Price Paid? 14 2.2.1 The
Seller - Disposal Motives 14 2.2.2 The Bidder - Acquisition Motives 16
2.2.3 Competition 16 2.2.4 Transaction Charges 18 2.2.5 Trust 18 2.3
Question 2: Which Factors May Play an Additional Role when the Target is an
Independent Private Firm? 20 2.4 Question 3: How Can the Influence Factors
be Analyzed - Setting the Model 24 2.4.1 Methodology 25 2.4.2 Data Set 29
2.5 Study Results 29 2.5.1 The Seller - Disposal Motives 32 2.5.2 The
Bidder - Acquisition Motives 35 2.5.3 Competition 36 2.5.4 Transaction
Charges 38 2.5.5 Trust in the Respective Counterparts 40 2.5.6 Study
Results - Summary of Findings 45 2.6 Study Assessment 47 2.6.1 Limitations
of the Study 48 2.7 Relationship Between the Study, Valuation Concepts and
the Control Premium Discussion 49 Appendix A Measurement of Factors 50 I
Measurement of Selling Pressure 52 II Measurement of Synergies 52 III
Measurement of Competition 53 IV Measurement of Bidders' Transaction
Charges 57 V Measurement of Trust 60 3 Valuing Private Companies - the PCD
67 3.1 Liquidity vs. Marketability 67 3.2 Overview of Discounts and
Premiums 68 3.3 Is a Discount for the Lack of Liquidity for a Controlling
Ownership Interests Necessary? 69 3.4 Discounts in Praxis 70 3.5 DLL for
Minority Interests 71 3.5.1 Cross-Sectional Differences 71 3.5.2 Controlled
Differences 72 3.5.3 Restricted Stock Studies 72 3.5.4 Initial Public
Offerings (IPOs) 74 3.5.5 Can Empirical Evidence for Minority Stakes be
Used for a Controlling Ownership Interest in a Private Company? 76 3.6 The
DLL for Control Ownership Situations and the PCD 77 3.6.1 Acquisition
Approach 77 3.6.2 Which Factors Influence the Measurement of the PCD? 82
3.6.3 Determining the Appropriate Discounts with the Acquisition Approach:
Study Selection and Assessment 91 3.6.4 Discount for the Lack of
Marketability - Summary of Study Results 95 3.7 Understanding the Standards
of Value 97 3.8 Understanding the Methodologies 102 3.8.1 Summary 105 3.9
Application Problems Resulting from Systematic Difference Between Market
Environments and Company Classes 108 3.9.1 Economic Market Environment 108
3.9.2 Market Environment - Time 109 3.9.3 Firm Characteristics 112 3.10
Development of the Market Environment 115 3.11 PCD Study 120 3.11.1 Short
Note on Methodology 120 3.11.2 The Data Sets 122 3.11.3 Results 123 3.12
Summary of Findings 144 3.12.1 General Recommendations for the Application
of a PCD or DLL 146 3.12.2 How to Use the Study Results in this Book 146
3.12.3 Empirical Results Summary - Germany 147 3.12.4 Empirical Results
Summary - North America 149 3.12.5 Empirical Results Summary - Western
Europe 149 3.12.6 Empirical Results Summary - UK 150 3.13 Conducting a PCD
Study 151 3.13.1 How to Proceed? 152 3.13.2 Which Multiples to Choose 152
3.13.3 Matching the Multiples - Computing the Discounts 153 3.13.4
Detecting Patterns - Data Clustering 154 3.13.5 Cross-Sectional Regression
160 3.13.6 Databases and Data Collection 164 3.13.7 Outlier Treatment 166
3.13.8 Measurement of Variables 166 Appendix B The PCD and the Relative
Valuation Methodology 167 Appendix C How Different is the Mittelstand
Compared to Dependent Private German Firms? 171 References 173 Databases
175 Glossary 177 Index 179