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Dear Sir,
Please I can not find any video on lecture of the Valuation of Acquisition and Mergers. Any Suggestion? Thanks
The reason is that although it is important, it does not involve any techniques that are not covered in other lectures.
The problem is more one of approach and so I have recorded lectures going through a few question 1’s from past exams and watching these will help.
You can find them by clicking on ‘revision kit live’ from the main P4 page.Dear Sir,
In example 2 of this topic in the P4 notes the answer has cash flows of year 1 to 5 thus:
year 1 2 3 4 5
Cash flows 35 42 47 52 207Please how did you come about these figures.
Thanks
It has been assumed that the existing cash flows are after tax, but that the synergy benefit of 10 is before tax. (I should have made this clear in the question – sorry. I will change it).
So….year 1 is 20 + 8 + (10 x 70%) = 35
Year 2 is 25 + 10 + (10 x 70%) = 42And so on.
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