Mergers & Acquisitions (M&A) plays a critical role in business and in capital markets. It is the subject of companies buying and selling other companies. As investors, we may come across situations where the companies we own is attempting to acquire other companies. Similarly, we may also come across situations where other companies make us an offer to acquire a company that we own. We need to learn how to analyze the attractiveness of such proposed M&A transactions and how these proposed transactions will affect our investments. We’ll learn how M&A works conceptually and then apply these concepts into practice through an M&A case study where we evaluate Chipotle’s hypothetical acquisition of Wendy’s.
- Different buyers in M&A and their motivations
- Acquisition currency mix and resulting impact on financials
- How to build an M&A accretion / dilution model