Marketable Minority Level.On the other hand, this is the value of what the redeeming company is acquiring. Why should the family business pay any less than that? From an economic perspective, a redemption at the nonmarketable minority level is accretive to the non-selling sharehol...
But what does all this mean for future brands? ‘You should not aspire to be a DTC brand’ While most analysts agree that a hybrid model is the future, they also tend to agree that DTC will continue to be important for retail’s newest entrants. The channel is easy to ...
If this sounds like trite business advice, it’s because in the frothy excitement of the current hype wave, it’s easy to mistake anything “LLM” as cutting-edge accretive differentiation, missing which applications are already old hat. ...
What does this mean for communications service providers and content creators? In 2021, the over-the-top (OTT) market will be primarily shaped by the consumer response to COVID-19 and their experiences throughout the pandemic. New digital experiences will lead to a more diverse partner ...
What does this mean for communications service providers and content creators? In 2021, the over-the-top (OTT) market will be primarily shaped by the consumer response to COVID-19 and their experiences throughout the pandemic. New digital experiences will lead to a m...
PubCo's management is initially very confident that the acquisition will be accretive to earnings. But a few months after the deal closes, PubCo announces that ABC's management was engaged in accounting fraud that grossly inflated its revenue andprofitability. Despite PubCo's management asserting ...
Understanding Target Firms Mergers and acquisitions (M&A)are a big part of the corporate world. It isn't uncommon for larger companies to buy and acquire smaller firms. In other cases, two companies of similar size may decide to merge to form a single unit. Regardless of the situation, ther...
The primary goal of a merger model is normally to determine if the acquiring company can increase its EPS after the deal goes through. A deal with accretive consequences should ostensibly create additional value for the firm's shareholders, a result that many consider to be the primary duty of...
What Does "In Play" Mean? The term "in play" refers to a firm that becomes a potentialtakeovertarget or puts itself up for sale with multiple bidders. When a firm becomes in play, news spreads about the potential deal.Speculationleads the share price to increase in value, making it much...
What Does "White Knight" Mean in Business? In business, a "white knight" is a strategy to prevent a hostile takeover. When a target company is under threat of being acquired by an unfriendly company, it seeks to be acquired by a friendly company with similar goals and fair considerations...