Strategic investors.Buyers with an existing interest in the same or a complementary niche may look at an acquisition target as a bolt-on or merger with the current asset and be able to realize significant cost and revenue synergies Financial sponsors.With greater formalization in the industry, the...
Figuring out how much to charge for a product/service that delivers value to customers while maximizing revenue or profit is the age-old business dilemma. Directly asking people their willingness to pay in pricing research is problematic due to its difficulty to answer, yielding subjective, unreli...
revenue synergies. Revenue synergies are normally more difficult to measure and are typically achieved during a longer-time period. One-time costs should continually be refreshed to justify the deal model and investment thesis. Dis-synergies (e.g., loss of operating scale, incremental tec...
There is a fourth method, theleveraged buyout(LBO) analysis, which is used to estimate what a private equity (PE) fund would pay for a company. I am not going to review this in detail as it is more applicable to mature businesses with value creation (EBITDA expansion) opportunities. Befo...
Of course, there’s been no transparency on how CDPQ Infra will be paid from fare revenue. Just that they are charging the province a set fee annually, likely subject to ridership levels, potentially acts of God, and possibly land use changes. ...
"It doesn't matter how beautiful your idea is, it doesn't matter how smart or important you are. If the idea doesn't agree with reality, it's wrong", Richard Feynman (paraphrased)
Next, you’ll need to create an estimate of the costs associated with different marketing activities. Take into consideration the cost of tools, resources, employees and contractors. Check out industry reports or consult peers to get an idea of the range you would have to spend. The final ste...
FedEx makes money primarily by delivering packages across the world. An estimate of 15 million shipments is processed by FedEx daily. There are four shipment categories from which FedEx earns money. Aside from package delivery, FedEx has other forms of generating revenue. Its broad transport options...
Alex Liu:In many transactions, you do one-time projects where you get the synergies and then you go back to base business. The way around that problem is through building foundational capabilities, and there are two real aspects to those. The first is a transformational leadership set of capa...
Net profit MarginNet Income / Revenue Return on assets (ROA)Net Income / Average Total Assets Return on equity (ROE)Net Income / Average Shareholders' Equity LiquidityCurrent ratioCurrent Assets / Current Liabilities A higher ratio suggests that the company has enough liquidity to cover its near-...