Overseas M&A

Overseas M&A: The study will focus on the valuation methodologies applied in overseas M&As and to which the policies and legislations will affect. It aims to find out the comparably more suitable to one industry, issues raised and the methods to quantize some indicators/key factors.

1. Reasonable Capital Structure—How to decide which or what level of the capital structure in the valuation model is reasonable to the company itself, to maintain the current one, or to apply the industry capital structure, or assume some changeable capital structure?
2. Quantify the special risks in the discounted rate of return. (industry scale risk, financial risk(like financial distress) etc..
3. Current outflows of “social capital.” Analyze its current rate of returns through analysis of the regions、Countries、industries the social capital flows in and the corresponding rate of returns, aiming to find out the benchmarking rate of returns for one region/Country/industry/etc.
4. Balance between WACC and IRR. It’s known that when IRR is greater than WACC, the project is worth of investing. But how to quantize how worthy the project will be when IRR is 5% (or some other percentages) greater than WACC? Here, we are not taking the strategy and spare capitals of the company in consideration.


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