We extend heartfelt gratitude to Mr. Prashant Kumar Ghose for enlightening our students with his expertise and rich experiences
Key Takeaways:
1. From an economic standpoint, a dynamic M&A activity should have a free flowing cashflow
2. As 70% of the acquisitions don’t succeed, a test to check the success of the acquisition is to see whether per share value increases while the deal is done.
3. Cash deals are better than stock deals
4. Goals cannot be met when companies count on synergies to materialize sooner than expected.
5. The very first step in determining the value synergy, is to judge what is going to be the walkaway price.
6. SVAR (Share Holder’s Value at Risk): Every major change in management program puts shareholders value at risk. If the project succeeds and meets its objective, then the shareholders benefit and if it fails, then the value of the company may fall.