Learn / Corporate development foundations Go to Overview 1. What corp dev does 2. Build, buy, or partner, Pro 3. Strategic and financial buyers, Pro 4. Synergies, Pro 5. What synergies are worth and what you can pay, Pro 6. Accretion and dilution from the buyer's seat, Pro 7. Integration, Pro 8. Minority stakes, joint ventures, and corporate venture capital, Pro 9. The corp dev case interview, Pro Flashcards, 0 of 17 reviewed Basic quiz Advanced quiz Terms Corporate development foundations
0 of 9 lessons
0 of 17 cards M&A from inside the company that buys: why it buys, what it can afford to pay, what the deal does to earnings, and what happens after the press release.
A Advanced5 lessons 5 What synergies are worth and what you can pay A buyer's walk-away price is the target's standalone value plus the net value of synergies. Pay more than that and the deal destroys value however good the strategy. 10 min 6 Accretion and dilution from the buyer's seat Public company boards ask one question before almost any deal: what does it do to our earnings per share? Corp dev answers it, and knows when it is the wrong question. 11 min 7 Integration The deal model assumes everything after closing goes to plan. Integration is where it does not, and it is where most of the value is won or lost. 9 min 8 Minority stakes, joint ventures, and corporate venture capital Not every deal is a full acquisition. Corp dev also buys pieces of companies, forms joint ventures, and often runs or works beside a venture arm. 9 min 9 The corp dev case interview The final round usually includes a case: should we buy this company? It tests strategy, numbers, and judgment at once, and it rewards a clear structure and a decision. 10 min Q Advanced quiz 10 questions, 80% passes