📘 Core concepts
- 1Types: Horizontal (same industry), Vertical (supply chain), Conglomerate (unrelated).
- 2Motives: synergy (cost/revenue), market power, tax benefits, diversification.
- 3Valuation: DCF, comparable company multiples, precedent transactions.
- 4Synergy = Value of combined firm − (Sum of standalone values).
- 5Defences: poison pill, white knight, golden parachute, crown jewel.
Want more depth on concept?
Make it click