PRAISE FOR M&A, A PRACTICAL GUIDE TO DOING THE DEAL, SECOND EDITION
"Jeffrey Hooke has done a fine job explaining the ′ins and outs′ of a very complex business. He knows what he′s talking about."
John C. Whitehead, former Co–Chairman, Goldman Sachs & Co.
"Jeff′s book brings together a wealth of knowledge and experience and is a must–read for anyone working in the field of international M&A."
Steven N. Robinson, Co–Head, China Corporate Practice, Hogan Lovells International
"Mr. Hooke′s book is an invaluable how–to guide for M&A professionals, finance professors, and business students."
Allan Eberhart, Professor of Finance and Director of Master of Science in Finance Program, McDonough School of Business, Georgetown University
"Whether you need a roadmap or reference, are entering your first M&A transaction, or have completed many and wish to check your approach, Jeff′s work will give you a secure footing from which to base all your decisions."
Lee Arthur, Managing Director of New York Institute of Finance, a division of Pearson PLC
"Jeffrey has done it again! He has laid out an insightful and practical approach to M&A that captivates the reader. A solid reference book that will excite those hungry for undertaking successful M&A transactions in all markets. For those starting out on this subject, it is a must–read to grasp substantial knowledge."
Fred Nuerte Nuer, Chief Executive Officer, Cornerstone Capital Advisors Ltd.
"This book is the perfect primer for operating executives seeking to expand their companies through M&A. I have a copy on my desk."
Daniel Ilisevich, Chief Financial and Administrative Office, Compusearch Software Systems
"Mr. Hooke′s experience as an investment banker and private equity investor shines through. For money managers, the book is a perfect primer on the growth tactics of M&A–oriented firms, the takeover value of public companies, and the likely form of M&A events."
Lin Dong, CFA, FRM, Associate Director, UBS Asset Management (China)
PART ONE The Big Picture
The Global M&A Market: Current Status and Evolution 3
U.S. M&A History, Trends, and Differences from Other Nations 9
The Need for Growth Spurs Acquirers to Buy Other Companies 15
The Three Financial Tactics That Dominate the M&A Business 25
PART TWO Finding a Deal
The Buyer Must Have a Methodical Plan in Order to Find a Quality Transaction 39
To Begin an Acquisition Search, the Buyer First Sets the Likely Parameters of a Deal 43
The Buyer Starts the Formal Acquisition Search by Alerting Intermediaries and Contacting Possible Sellers 47
Finding a Deal: Likely Results of a Search 59
The Four Principal Risks Facing a Buyer in the M&A Business 65
PART THREE Target Financial Analysis
Sizing Up the M&A Target from a Financial Point of View 77
To Facilitate Financial Projections, the Buyer Needs to Classify the Target as a Mature, Growth, or Cyclical Business 91
How Practitioners Forecast an M&A Target s Sales and Earnings 97
PART FOUR Acquisition Valuation
The M&A Industry Typically Uses Four Valuation Methodologies 109
The Use of Discounted Cash Flow in M&A Valuation 113
Valuing M&A Targets Using the Comparable Public Companies Approach 123
Valuing an M&A Target by Considering Comparable Deals and Leveraged Buyouts 133
Valuation Situations That Don t Fit the Standard Models 143
PART FIVE Combination, the Sale Process, Structures, and Special Situations
Combining the Buyer s and Seller s Financial Results for the M&A Analysis 159
When Is the Best Time for an Owner to Sell a Business? 167
The Sale Process from the Seller s Vantage Point 173
A Review of Legal and Tax Structures Commonly Used in Transactions 183
Unusual Transaction Categories 193
Final Thoughts on Mergers and Acquisitions 199
About the Author 201