PN2002 PACKAGED DEAL 2026 EXAM SCRIPT
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
◉ Acquisition Premium.
Answer: The amount paid above a target's pre-deal market value
◉ As-Is Value.
Answer: The standalone value of a target before any synergies are
applied
◉ Synergy Value.
Answer: The additional value created exclusively by combining two
entities that neither could produce independently
◉ Natural Owner.
Answer: The party under whose ownership a business achieves a
higher valuation than under any other owner
◉ Natural Owner Valuation Test.
Answer: The question of whether a prospective buyer can add more
value to a business than any other potential owner
,◉ Parenting Matrix.
Answer: A framework plotting corporate business units by how well
the parent understands them against how much value the parent
can add
◉ Core Business.
Answer: A business unit the parent understands well and adds
significant value to — the primary target for acquisition
reinforcement
◉ Value Trap.
Answer: A business unit a parent could potentially add high value to
but does not fully understand — dangerous to hold and high
integration risk
◉ Ballast.
Answer: A business unit the parent understands well but adds little
value to — mostly harmless to retain but should be divested
opportunistically
◉ Alien Territory.
Answer: A business unit the parent neither understands nor adds
value to — should be divested immediately
,◉ Corporate Strategy.
Answer: A plan by which a multi-business company determines how
headquarters adds more value to its business units than it costs to
maintain
◉ Portfolio Management.
Answer: The systematic evaluation of which businesses a parent
should own / acquire or divest based on where the most value is
created
◉ Core Acquisition.
Answer: An M&A deal fitting directly into the acquirer's existing
business model generating immediate synergies
◉ One-Step Adjacency Acquisition.
Answer: An acquisition of a related but distinct business that
generates immediate customer or cost synergies
◉ Two-to-Three Step Adjacency Acquisition.
Answer: An acquisition with no immediate synergy but potential for
future synergy as the businesses develop together
◉ Diversification Acquisition.
, Answer: An acquisition of a business with no synergy to the core —
value destruction is the typical result
◉ Make vs. Buy vs. Rent.
Answer: The strategic framework for deciding whether to build a
capability organically / access it through a contract or alliance or
acquire it outright
◉ RPV Framework.
Answer: A tool for identifying what is truly being acquired in a deal
— resources / processes or values — which dictates the appropriate
integration approach
◉ Resources.
Answer: The tangible and intangible assets a company owns such as
licenses / products / technology / plants / brands and relationships
◉ Processes.
Answer: The ways a company creates value such as key account
management / new product development and customer insight
◉ Values.
TEST PAPER QUESTIONS AND SOLUTIONS
GRADED A+
◉ Acquisition Premium.
Answer: The amount paid above a target's pre-deal market value
◉ As-Is Value.
Answer: The standalone value of a target before any synergies are
applied
◉ Synergy Value.
Answer: The additional value created exclusively by combining two
entities that neither could produce independently
◉ Natural Owner.
Answer: The party under whose ownership a business achieves a
higher valuation than under any other owner
◉ Natural Owner Valuation Test.
Answer: The question of whether a prospective buyer can add more
value to a business than any other potential owner
,◉ Parenting Matrix.
Answer: A framework plotting corporate business units by how well
the parent understands them against how much value the parent
can add
◉ Core Business.
Answer: A business unit the parent understands well and adds
significant value to — the primary target for acquisition
reinforcement
◉ Value Trap.
Answer: A business unit a parent could potentially add high value to
but does not fully understand — dangerous to hold and high
integration risk
◉ Ballast.
Answer: A business unit the parent understands well but adds little
value to — mostly harmless to retain but should be divested
opportunistically
◉ Alien Territory.
Answer: A business unit the parent neither understands nor adds
value to — should be divested immediately
,◉ Corporate Strategy.
Answer: A plan by which a multi-business company determines how
headquarters adds more value to its business units than it costs to
maintain
◉ Portfolio Management.
Answer: The systematic evaluation of which businesses a parent
should own / acquire or divest based on where the most value is
created
◉ Core Acquisition.
Answer: An M&A deal fitting directly into the acquirer's existing
business model generating immediate synergies
◉ One-Step Adjacency Acquisition.
Answer: An acquisition of a related but distinct business that
generates immediate customer or cost synergies
◉ Two-to-Three Step Adjacency Acquisition.
Answer: An acquisition with no immediate synergy but potential for
future synergy as the businesses develop together
◉ Diversification Acquisition.
, Answer: An acquisition of a business with no synergy to the core —
value destruction is the typical result
◉ Make vs. Buy vs. Rent.
Answer: The strategic framework for deciding whether to build a
capability organically / access it through a contract or alliance or
acquire it outright
◉ RPV Framework.
Answer: A tool for identifying what is truly being acquired in a deal
— resources / processes or values — which dictates the appropriate
integration approach
◉ Resources.
Answer: The tangible and intangible assets a company owns such as
licenses / products / technology / plants / brands and relationships
◉ Processes.
Answer: The ways a company creates value such as key account
management / new product development and customer insight
◉ Values.
