Mergers & Acquisitions: Creating Value Before the Transaction

May 4

Hi Welcome to ValuationPodcast.com - A podcast and video series about all things related to business and valuation. My name is Melissa Gragg, a company valuation expert in St. Louis Missouri.

During this episode we will discuss Mergers & Acquisition: Creating Value Before the Transaction

with Stephen White, an ESOP valuation expert and bankruptcy expert in Montclair New Jersey.

Welcome Stephen!!

Covid created havoc in a number of industries and professions. The M&A space was not immune. Where are we currently in this space?
How much of the current M&A activity would you say involves mid-market size companies?
Is there an industry that you have come across that seems to be the most active?
Would you say the reason for the activity in those industries is because of synergies?
There are two types of synergies, combinational and transformational synergies. How do you differentiate between the two and how could they have an impact on deal price?
As a valuation expert, what do you see, or notice is the biggest concern as it pertains to synergies?
To avoid potential challenges, what have you seen as the main issues when assessing synergy potential in deals?
Staying with value. Value is something that is discussed and tossed around a lot in the discussion of M&A. From your expertise in valuating companies, how does a company build value?
How does debt effect ROI (return on investment)?
Some owners prefer to avoid borrowing so they can avoid paying interest to a bank. As a privately held business owner, is there any risk in this type of thinking?
Does growth automatically create value?
When valuing a company, how do you assess value creation?
Strategic planning, is that something that can help build value?
Once you have a game plan on how to build value, the next question should be, how do you measure value?
Of the three most recognized valuation approaches, which do you prefer to use in a M&A valuation and why?
Fairness Opinions are often used for public companies. Is it used for private company transactions?
Who prepares the Fairness Opinion, what actually goes into this letter and is there a cost?