ChannelPulse
Mergers, acquisitions and price
A deal case is a valuation question wearing a strategy costume. The structure is stable — why buy at all, is this target any good, what are the synergies worth, what could go wrong, and what is the most you would pay — and the arithmetic at the end is what decides it, because most acquisitions destroy value by overpaying for synergies that never arrive.
What you'll be able to do
- Test build against buy against partner before accepting that an acquisition is the right route
- Quantify cost and revenue synergies separately, and haircut the revenue side
- Value a target three ways and turn that into a maximum price and a payback period
- Name the integration and regulatory risks that make a financially sound deal fail anyway
Before this: market-sizing-and-entry
The rest of this lesson is in the app
A deal case is a valuation question wearing a strategy costume. The structure is stable — why buy at all, is this target any good, what are the synergies worth, what could go wrong, and what is the most you would pay — and the arithmetic at the end is what decides it, because most acquisitions destroy value by overpaying for synergies that never arrive. This walkthrough runs about 26 minutes, with runnable code you can edit and re-run as you read.
Continue in ChannelPulseThe first module of every track is free to read on the web — see what's open in Consulting cases.