Price Is a Function of Risk. And Risk Can Be Managed.
In M&A, Price Is a Function of Risk. And Risk is Our Playground. A deal is shaped and solidified by many factors and external and internal dynamics. A complex deal ought to be explained in simple terms in order to work. We suggest two reliable and time-tested formulas. Price of asset = Opportunity (expected return) […]
The Time Factor in Dealmaking
A M&A deal dynamics can be simplified and visualised to its three core characteristics. To this effect, it can be shown as a triangle with three variable factors placed in each corner – Asset, Price and Time. The purpose of dealmaking is reaching an agreement on at least those three fundamental aspects. All conditions equal, […]
Due Diligence as a SWOT Analysis
Plenty has been said of the importance of the due diligence. You may have heard the expression ‘to buy a cat in a sack’. Every buyer in a sales contract has the duty to inspect diligently the product purchased for hidden defects or non-conformity. That being said, the main objectives include: identify the risks for […]