ABFM: Concepts and Practice · Part C: Valuation, Mergers and Acquisitions

Chapter 18: Mergers, acquisitions and restructuring

Why firms combine and when it pays: synergy, exchange ratios and EPS, takeovers and buyouts, demergers, and the rules that govern them.

Open Chapter 18 in the e-book The book and its prices

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

18.1Types, motives and synergyp. 241
18.2Exchange ratio and EPSp. 242
18.3Takeovers and buyoutsp. 243
18.4Demergers and other restructuringp. 244
18.5Law, tax and accountingp. 245
Exam traps and quick checksp. 246
Practice: 16 questions in three roundsp. 247
Answers, with every wrong option explainedp. 249
Make it stickp. 251
Chapter 18 on one pagep. 252

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.