What is an interloper in finance?

Interloper is a person who interferes with the affairs of others or intrudes in a place, situation, or activity. A trader operating without the license required by law is an interloper.

What is a fairness opinion in m& a?

A fairness opinion is a letter addressed to the board of directors prepared by a professional advisor experienced in valuing securities and business enterprises. In the M&A context, the crux of the opinion often is that the acquisition consideration is fair, from a financial point of view, to the shareholders.

Can you do accretion dilution analysis for private companies?

A public and private company financial statements can’t be directly compared apples-to-apples. As a quick gauge of the attractiveness of a potential target, we should look at the company’s EPS before and after the proposed transaction. This analysis is known as the accretion / dilution analysis.

Where is fairness opinion?

While fairness opinions are solicited for virtually all M&A and related corporate control transactions, they’re typically obtained at the tail end of the transaction, usually when the deal closing is imminent.

What do you look for in a merger?

It’s More Than Numbers. Even if the numbers look good, is it a good fit?

Mergers Of Equals Rarely Work.

Consider Costs And Culture.

Think Of The Impact On Customers.

Know Your Leverage.

Focus On Your Objective.

Be Willing To Walk Away.

Keep The Bigger Picture In Mind.

How do you analyze a merger and acquisition?

There are three major steps to conducting a merger or acquisition analysis: Step 1: Obtaining a purchase price. Step 2: Estimating sources and uses of funds. Step 3: Creating a pro-forma analysis.

What does a fairness opinion look like?

A fairness opinion is a report that evaluates the facts of a merger, acquisition, carve-out, spin-off, buyback, or another type of business purchase. It provides an opinion about whether or not the proposed stock price is fair to the selling or target company.

How do you know if a deal is accretive or dilutive?

A merger and acquisition (M&A) deal is said to be accretive if the acquiring firm’s earnings per share (EPS) increase after the deal goes through. If the resulting deal causes the acquiring firm’s EPS to decline, the deal is considered to be dilutive.

What should I know before M&A?

In M&A transactions there are several important factors that executives, investment bankers, and other stakeholders have to consider, including:

• Form of consideration (cash vs. shares)
• Accounting.
• Tax treatment.
• Synergies.
• Strategic rationale.
• Intangibles.