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 ...
An accretive acquisition is similar to the practice ofbootstrapping, wherein an acquirer purposely buys a company with a low price-earnings ratio through astock swaptransaction in order to boost the post-acquisition earnings per share of the newly formed combined business and encourage a rise in ...
In this series of posts, we have explained what the levels of value mean. Your family business has a different value at each level of value because of differences in expected cash flows and risk factors. Considering four common corporate transactions, we have illustrated why the l...
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. AI in the loop; humans at the center Right now, L...