Valuation for Mergers, Buyouts and Restructuring, University Edition

by Enrique R. Arzac

• ISBN13: 9780471449447
• ISBN10: 047144944X
• Format: Hardcover
• Copyright: 2004-03-01
• Publisher: Wiley

Summary

Valuation is the starting point of any merger, buyout or restructuring decision. This book provides a unique combination of practical valuation techniques with the most current thinking to provide an up-to-date synthesis of valuation theory as it applies to mergers, buyouts and restructuring. The book will provide the understanding and the answers to the problems encountered in valuation practice, including detailed treatments of: free cash flow valuation; financial and valuation of leveraged buyouts (LBO's); Real Option Analysis as it applies to the valuation of entry and exit decisions; contract design to resolve differences of options in valuation and mergers and acquisitions; and valuation of special offer structures.

Author Biography

Enrique R. Arzac is Professor of Finance and Economics at the Columbia University Graduate School of Business and Director of the Merger and Acquisitions programs for executives at Columbia Business School and London Business School. He is the author of many academic articles in financial economics and has been consultant to corporations and financial institutions in North and South America and Europe. He is a director of the Adams Express Company, Petroleum and Resources Corporation, and Credit Suisse Asset Management funds.

Table of Contents

Part I. The Tools of Valuation.

1. A User’s Guide.                                                

2. Forecasting and Valuation of Free Cash Flows.   

3. The Equity Premium and the Cost of Capital.

4. Metrics and Multiples.                          

5. Economic Value Added.

6. Valuation with Changing Capital Structure.

7. Debt Capacity   for Acquisition Financing.   

8. Valuing Entry and Exit Options.

Part II: Mergers, Acq uisitions and Buyouts.

9.  Merger and Acquisitions.   

10. Deal making with Differences of Opinion.   

11. Special Offer Structures: Price Guarantees and Collars.  

12. Acquisitions in Developed and Emerging Markets.   

13. Leveraged Buyouts.

Part III: Recapitalizations and Restructuring.              

14. Recapitalization of Troubled Companies.   

15. Asset Restructuring.

Appendix A. Financial Options.

Appendix B. Valuation Aids Software. 

Appendix C. Answers to Selected End-of-Chapter Problems.                    

Technical Notes.

References.