Question:

Why would a strategic acquirer typically be willing to pay more for a company than a private equity firm?

Answer hidden.

Answer:

A strategic acquirer will usually be willing to pay more for a company than a private equity firm because they will be able to recognize revenue and cost synergies that the PE firm wouldn't be able to unless they were to merge it with one of their other portfolio companies.

Other

Merger Model

Is there a shortcut to determine whether a transaction is accretive or dilutive to shareholders?

Merger Model

In an all-stock deal, how can you quickly tell if a deal will be accretive or dilutive?

Merger Model

A company with a higher P/E multiple acquires one with a lower P/E multiple. Is this deal accretive or dilutive?

Merger Model

What are synergies? What kinds of synergies are there?

Merger Model

What is the difference between a merger and an acquisition?

Merger Model

Question:

Why would a strategic acquirer typically be willing to pay more for a company than a private equity firm?

Answer:

Other

Merger Model

Is there a shortcut to determine whether a transaction is accretive or dilutive to shareholders?

In an all-stock deal, how can you quickly tell if a deal will be accretive or dilutive?

What are some reasons for why a company would want to acquire another company?

Why does goodwill get created in an acquisition?

Walk me through a basic merger model

A company with a higher P/E multiple acquires one with a lower P/E multiple. Is this deal accretive or dilutive?

What are synergies? What kinds of synergies are there?

What is the difference between a merger and an acquisition?

Why would an acquisition be dilutive?

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