Year 3 · Applied Finance · M&A Analysis
M&A Analysis
Learn how to analyze acquisitions from strategic rationale through purchase price, financing, synergies, accretion/dilution, purchase accounting, sensitivities and deal risks.
LEARNING OBJECTIVES
What you should be able to explain after this lesson
01
Explain strategic and financial rationales for M&A.
02
Bridge offer price from equity value to enterprise value.
03
Understand cash, debt and stock consideration.
04
Model synergies, purchase accounting and accretion/dilution.
05
Analyze premiums, financing mix and transaction sensitivities.
06
Identify integration, regulatory and execution risks.
CONCEPT MAPFrom strategic rationale to pro forma outcome
A deal should create value for a reason, not simply because two companies can combine
CORE FACTS · SAME IN EVERY MODE
Common rationales include scale, market entry, product expansion, vertical integration and cost efficiency.
Strategic fit should be translated into measurable financial outcomes.
A compelling strategic story does not justify any purchase price.
The buyer must compare standalone value with value after synergies and integration costs.
BeginnerTeaching style changes, knowledge does not.
A buyer should be able to explain why owning the target makes the combined company better and how that improvement becomes real financial value.
PROFESSIONAL VOCABULARYStrategic rationale / logique stratégique Integration risk / risque d’intégration
Economic reason why combining two businesses may create value.
Risk that expected benefits are not realized after closing.