Your guide to a career in financeTM

What criteria would you use to help a client make an acquisition?

Financial Criteria:

  • EPS accretion/dilution
  • Does it create shareholder value? (NPV > 0)
  • Sources of cash for the acquisition

Strategic Criteria:

  • Growth in market share
  • Industry consolidation / economies of scale
  • Vertical integration
  • Technological or intellectual property acquisition
  • Regulatory & Political Change e.g. media & telecom (Telecom Reform Act of 1996); financial services (Glass-Stegall Act)
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