9-25-17
M and A

Redefining terms
Security -> lien on assets of borrower
Seniority / subordination -> seniority built into debt. Structural handles subsidiaries vs parents

M & A Valuation
3 ways of valuing a company
    Comparible companies
        Overly simplistic
        Relies on valuations at just one point in time
        what determines compariables
            size
            industry
            geographic location
            cap structure
            growth
            profitability
            consistant accounting methodologies
        What financial items are commonly used
            Sales
            Multuple of EBITDA
        Examples
            Cyclical manufacturing -> EV/EBITDA
            High tech co -> P/E || P/Rev
            Leasing business

    Precident Transactions
        Consider control premiums
        Synergies also included in control premiums
        ev / ebitda -> ev / (ebitda + synergies)
        Some things to include
            Premiums paid
            form of consideration
            aquisition percentage
            synergies
    DCF
        Bloomberg commands
            __equity_ticker__ <equity> EEO <GO>
            
