PN2002 PACKAGED DEAL 2026 EXAM REVIEW
COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
◉ Alliance.
Answer: A cooperative arrangement between companies providing
governance beyond a pure contract but without equity commitment
◉ Staged Approach.
Answer: A strategy of entering a lighter commercial relationship
with a target before committing to acquisition in order to test
chemistry and validate synergies
◉ Target Screening Criteria.
Answer: The three dimensions used to evaluate acquisition
candidates: strategic fit / valuation and availability
◉ Strategic Fit.
Answer: The degree to which an acquisition advances the acquirer's
strategy and enhances competitive advantage
◉ Availability.
,Answer: Whether a target can be acquired at a value-creating price
and whether the owners have motivation to sell
◉ Deal Origination.
Answer: The proactive process of identifying and developing
relationships with acquisition targets before they become available
on the open market
◉ Business Development Department.
Answer: The internal function responsible for continuously
monitoring a universe of potential targets and building relationships
with priority candidates ahead of a deal process
◉ Discounted Cash Flow.
Answer: A valuation method that forecasts future free cash flows
and discounts them at the cost of capital to determine present value
◉ Comparable Multiples.
Answer: A valuation method identifying similar companies /
calculating their price-to-earnings or enterprise-value ratios and
applying those to the target
◉ Asset-Based Valuation.
, Answer: A valuation method adding up the value of individual assets
at historical cost or replacement cost — rarely reflects true business
value for going-concern companies
◉ EV/EBITDA.
Answer: An enterprise value multiple dividing total enterprise value
by earnings before interest / taxes / depreciation and amortization
◉ P/E Ratio.
Answer: A valuation multiple dividing share price by earnings per
share — measures what the market pays for each unit of profit
◉ EV/Sales.
Answer: A valuation multiple dividing enterprise value by revenue
— used when the target is unprofitable or when acquiring market
scale
◉ MVIC.
Answer: Market Value of Invested Capital — the sum of market value
of common equity / preferred equity and interest-bearing debt less
cash
◉ Terminal Value.
COMPLETE QUESTIONS AND CORRECT
ANSWERS GRADED A+
◉ Alliance.
Answer: A cooperative arrangement between companies providing
governance beyond a pure contract but without equity commitment
◉ Staged Approach.
Answer: A strategy of entering a lighter commercial relationship
with a target before committing to acquisition in order to test
chemistry and validate synergies
◉ Target Screening Criteria.
Answer: The three dimensions used to evaluate acquisition
candidates: strategic fit / valuation and availability
◉ Strategic Fit.
Answer: The degree to which an acquisition advances the acquirer's
strategy and enhances competitive advantage
◉ Availability.
,Answer: Whether a target can be acquired at a value-creating price
and whether the owners have motivation to sell
◉ Deal Origination.
Answer: The proactive process of identifying and developing
relationships with acquisition targets before they become available
on the open market
◉ Business Development Department.
Answer: The internal function responsible for continuously
monitoring a universe of potential targets and building relationships
with priority candidates ahead of a deal process
◉ Discounted Cash Flow.
Answer: A valuation method that forecasts future free cash flows
and discounts them at the cost of capital to determine present value
◉ Comparable Multiples.
Answer: A valuation method identifying similar companies /
calculating their price-to-earnings or enterprise-value ratios and
applying those to the target
◉ Asset-Based Valuation.
, Answer: A valuation method adding up the value of individual assets
at historical cost or replacement cost — rarely reflects true business
value for going-concern companies
◉ EV/EBITDA.
Answer: An enterprise value multiple dividing total enterprise value
by earnings before interest / taxes / depreciation and amortization
◉ P/E Ratio.
Answer: A valuation multiple dividing share price by earnings per
share — measures what the market pays for each unit of profit
◉ EV/Sales.
Answer: A valuation multiple dividing enterprise value by revenue
— used when the target is unprofitable or when acquiring market
scale
◉ MVIC.
Answer: Market Value of Invested Capital — the sum of market value
of common equity / preferred equity and interest-bearing debt less
cash
◉ Terminal Value.
