Chapter 2: Mergers & Acquisitions Bashier Elhafy December 31, 2019 Chapter 2: Mergers & Acquisitions, Special Purpose Valuation Comments Off on Chapter 2: Mergers & Acquisitions 56 Views Study MaterialsKnowledge Test Loading Viewer... Your email address: Your name: Start Quiz <<12345678910>> 0% Question 1 of 10 1. Valuation is one of most critical steps in the M&A process because…It seeks to establish a price at which a buyer and seller will be willing to dealHaving a valuation performed can ensure the buyer they will sell for a higher priceIt is illegal to buy or sell a company without first having an independent valuation of the subject company performedValuations are not important. They add no value to the overall M&A process Loading... Question 1 of 10Question 2 of 10 2. Which of the following is not a generally accepted valuation method?Market ApproachCash Flow ApproachIncome ApproachAsset Approach Loading... Question 2 of 10Question 3 of 10 3. To which standard of value is a valuation analyst held when performing a valuation for the purposes of an M&A transaction? Fair ValueFair Market ValueLiquidation ValueNone of the Above Loading... Question 3 of 10Question 4 of 10 4. Which of the following is not generally used as pricing for valuation services associated with an M&A transactionSuccess or contingency feeFlat feeHourly rateThe service may be included free of chargeAll of the above are common fee structures Loading... Question 4 of 10Question 5 of 10 5. Which of the following is not meaningful to project in a discounted cash flow model?RevenueCapital ExpendituresInterest-Bearing DebtNet Working CapitalOperating Expenses Loading... Question 5 of 10Question 6 of 10 6. Which of the following is added (subtracted) to (from) enterprise value to derive equity value?Total LiabilitiesDepreciation and AmortizationInterest-Bearing DebtIncome Taxes Loading... Question 6 of 10Question 7 of 10 7. The definition of Fair Market Value references this type of buyer, who often times is not the type of buyer involved in an M&A transaction?Strategic BuyerHypothetical buyerFinancial buyerFair Market Value references each of these buyers Loading... Question 7 of 10Question 8 of 10 8. Which of the following is not commonly used as a basis of comparison between a subject company and a company or transaction being used in either of the Market Approach Methods? SalesGrowthCapital StructureManagement StructureIndustry Loading... Question 8 of 10Question 9 of 10 9. It is appropriate to use multiple valuation methods in a calculation engagement?TrueFalse Loading... Question 9 of 10Question 10 of 10 10. Which of the following is not a type of adjustment commonly made to historical financial statements?Non-operating adjustmentsNon-recurring adjustmentsControl adjustmentsMarketability adjustments Loading... Question 10 of 10 Loading... Share tweet
