series 79 fully solved graded A+ 2024 passed

series 79what is most useful when valuing divisions of public companies - correct answer EV/EBIT preemptive bid - correct answer A negotiated sale is often initiated by the buyer as a way to preempt an auction. This is called a preemptive bid. If it is based on the value of perceived synergies between the two companies, directors of the acquiring company may be justified in paying a higher price for the target than competitors (who lack the same synergies) would be willing to pay. It's very important to identify synergies and include their estimated value in the valuation analysis supporting the preemptive bid. Please arrange the proper sequencing for the following M&A sell-side auction process events I. Buyer site visits II. First round bids received III. Definitive Agreement negotiations IV. Teaser distributed - correct answer IV, II, I, III The teaser is distributed at the start of the process launch. Afterwards, the sell-side adviser receives first round bids. If a buyer is selected to proceed to the second round, then that buyer attends a management presentation and conducts detailed due diligence, including site visits. Later on in the second round of the process, detailed discussions and negotiations take place on the Definitive Agreement. Which one of the following facts does not need to be disclosed in a fairness opinion? A)that the writer of the fairness opinion will receive compensation contingent upon completion of the transaction B)that the fairness opinion was approved by a fairness committee C)a material relationship between the writer of the opinion and the company involved in the transaction