...Private Equity as an Asset Class Guy Fraser-Sampson Praise for Multi Asset Class Investment Strategy: “. . . pension fund trustees right around the globe should read the book . . . it is certain to stir up some much needed debate . . . has received rave reviews from within the UK pension industry” (Global Pensions) “. . . time and money well spent . . . the tectonic plates are shifting under the UK investment establishment” (Daily Telegraph) “. . . an indispensable roadmap for anyone looking to create a successful investment programme . . .” (The Securities Investment Review) “It’s some time since I read anything as clear and punchy . . . if you are involved in setting investment strategy for a pension fund, this book cannot help but clarify your thinking.” (Benefits & Compensation International) “This book stakes Fraser-Sampson’s claim to be recognised as one of the great thinkers on portfolio theory, ranking alongside Markowitz and Swensen.” (Rebecca Meijlink, AlphaBet Capital) “I somehow expected another version of Swensen’s “Pioneering Portfolio Management”. However, this is in my eyes a huge improvement and a surprisingly entertaining and satisfying read.” (Thomas Meyer, EIF, author: Beyond the J-Curve) Private Equity as an Asset Class For other titles in the Wiley Finance Series please see www.wiley.com/finance Private Equity as an Asset Class Guy Fraser-Sampson Copyright © 2007 John Wiley & Sons Ltd, The Atrium, Southern Gate...
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...by Allen Michel and Israel Shaked RJR Nabisco: A Case Study of a Complox Lovoragod Buyout Several features of RJR Nabisco made it a particularly attractive LBO candidate. Its operations exhibited moderate and consistent growth, required little capital investment and carried low debt levels. Its problems—a declining return on assets and falling inventory turnover—appeared fixable. And it offered significant break-up value. Valuing RJR's equity at the time of the LBO requires detailed knowledge of the company's operations and extensive number crunching. The analysis is obviously quite dependent on the assumptions made about cash flow in the post-LBO period, as well as the long-term, steady-state growth rate. Nevertheless, the figures suggest that, even assuming a high, 5 per cent level of steady-state growth, RJR's cash flows would have to grow at a rate of at least 18 per cent per year to justify KKR's bid of $109 per share. RJR's board played a prominent role in the bidding process. By setting the bidding rules, the board successfully minimized the possibility of collusion and thus increased potential gains to stakeholders. The decision to accept KKR's offer over RJR management's higher bid appears to reflect the board's concern for employees and existing shareholders. OTH THE POPULAR press and the academic press have devoted extensive coverage to leveraged buyouts, but neither has devoted much attention to analyzing the features of a specific LBO.^ The RJR Nabisco B ...
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...VALUATION Outline Page Valuation overview 1 DCF valuation 7 47 Comparable transactions analysis 59 LBO analysis 68 Appendix VALUATI O N Comparable companies analysis 74 VAIDYA NATHAN 1 Overview “Price is what you pay. Value is what you get” VALUATI O N O V E R VI EW Value ! Price Do not confuse Price and Value. They are not the same If the Price paid is less than the Value derived, it’s a good investment VAIDYA NATHAN 2 Overview Why valuation is important? Divestitures Acquisitions How much should we pay to buy the company? How much should we sell our company/division for? Fairness opinions Research Is the price offered for our company/division fair (from a financial point of view)? Should our clients buy, sell or hold positions in a given security? Valuation Public equity offerings Hostile defense For how much should we sell our company/division in the public market? Is our company undervalued/vulnerable to a raider VALUATI O N O V E R VI EW Debt offerings New business presentations Various applications What is the underlying value of the business/assets against which debt is being issued? VAIDYA NATHAN 3 Overview The valuation process Determining a final valuation recommendation is a process of triangulation using insight from each of the relevant valuation methodologies (1) Discounted Cash Flow VALUATI O N ...
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...do Interviewing The Professional Conduct staff conducts an investigation that may include cf a. 1. Code Of Ethics And Standards Of Professional Conduct Collecting documents and records in support of its investigation Conclude the inquiry with no disciplinary sanction Issue a cautionary letter If finding that a violation of the Code and Standards occurred, the Designated Officer proposes a disciplinary sanction ay to Process for the enforcement of the Code and Standards When an inquiry is initiated Upon reviewing the material obtained during the investigation, the Designated Officer may .c Requesting a written explanation from the member or candidate The member or candidate Complaining parties Third parties om / a. Accepted by member The matter is referred to a hearing by a panel of CFA Institute members :/ /w Continue proceedings to discipline the member or candidate Rejected by member Act with integrity, competence, diligence, respect and in an ethical manner Integrity of investment profession &...
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...JOURNAL OF MANAGEMENT & PRODUCTION (IJM&P) http://www.ijmp.jor.br ISSN: 2236-269X v. 5, n. 3, June - September 2014. MICROSOFT ACQUIRED NOKIA IN UNIPOLAR OPERATING SYSTEM MARKET Netra Pal Singh Management Development Institute, India E-mail: knpsingh@mdi.ac.in Submission: 13/11/2013 Revision: 05/01/2014 Accept: 10/01/2014 ABSTRACT The recent big tickets include Microsoft acquiring part of Nokia for US$ 7.2 billion, Verizon buy 45% stake in Vodafone for US$130 billion, Google acquiring Motorola for 12.5 billion. These buyouts are analyzed and commented by experts of the industry. This research paper attempted to collate their view in the context of Microsoft and Nokia deal on six parameters. These parameters are (i) reasons for the downfall of the Nokia market share, (ii) general comments of the experts, (iii) similarities / dissimilarities of past and business models of the smartphone business, (iv) reasons for Microsoft to buy out Nokia, (vi) impact of buyout on Microsoft, Nokia, consumers and markets. In addition, paper discusses the existing theories of merger & acquisition in telecom sector in the past. Keyword: Smartphone, Microsoft, Nokia, HERE Maps, Galaxy, Lumia, Synergy Trap Hypothesis. [http://creativecommons.org/licenses/by/3.0/us/] Licensed under a Creative Commons Attribution 3.0 United States License 598 INDEPENDENT JOURNAL OF MANAGEMENT & PRODUCTION (IJM&P) http://www.ijmp.jor.br 1. ISSN: 2236-269X...
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...9-205-058 REV: AUGUST 19, 2011 MALCOLM BAKER JAMES QUINN Ber rkshire Partne Bid e ers: dding f Cart for ter’s In the spring of 2001, Bost o ton-based pri ivate equity firm Berkshi Partners w consider ire was ring a levera aged buyout (LBO) of the William Cart Co., a lead ter ding producer of infant, ba r aby, and child dren’s appar in the Un rel nited States. Berkshire Par B rtners, which had extensi h ive experienc investing i the ce in retail and manufac cturing sector was initia drawn to Carter’s bec rs, ally o cause of the s strong brand name ngth of the s the co ompany had developed during its 136 d 6-year history as well as for the stren y, s senior mana agement team (See Exhibit 1 for a profil of Berkshir m. t le re.) To investigate the option of a potential LBO, Berkshir assembled a five-memb team, to b led o t f L re d ber be by managing dire ectors Ross Jo ones and Bra adley Bloom and senior a associate Mich hael Ascione (See e. Exhib 2 for biogr bit raphical sketc ches.) The tea would hav less than e am ve eight weeks to move throu all o ugh the stages of a Gol ldman Sachs-led auction— —from initial r research and due diligenc to valuation and ce bid st trategy. In addition to running the auction and thereby serv ving as Carter agent, Go r’s oldman Sachs (GS) s would be offering “staple-on” financing. Under this arr d g rangement, th winning b he bidder would have d ...
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...Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL FOREWORD BY JOSEPH R. PERELLA Investment Banking Founded in 1807, John Wiley & Sons is the oldest independent publishing company in the United States. With offices in North America, Europe, Australia, and Asia, Wiley is globally committed to developing and marketing print and electronic products and services for our customers’ professional and personal knowledge and understanding. The Wiley Finance series contains books written specifically for finance and investment professionals as well as sophisticated individual investors and their financial advisors. Book topics range from portfolio management to e-commerce, risk management, financial engineering, valuation, and financial instrument analysis, as well as much more. For a list of available titles, please visit our Web site at www.WileyFinance.com. Investment Banking Valuation, Leveraged Buyouts, and Mergers & Acquisitions JOSHUA ROSENBAUM JOSHUA PEARL John Wiley & Sons, Inc. Copyright C 2009 by Joshua Rosenbaum and Joshua Pearl. All rights reserved. Published by John Wiley & Sons, Inc., Hoboken, New Jersey. Published simultaneously in Canada. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976...
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...Annual Review 2009 06 Our performance 08 Our market 10 Our strategy bp.com/annualreview Operating at the energy frontiers How a revitalized BP is driving efficiency, momentum and growth Meeting the energy demands of today and tomorrow Oil Natural gas Wind Solar Biofuels Efficiency BP Annual Review 2009 Reconciliation of profit for the year to replacement cost profit The Annual Review for the year ended 31 December 2009 includes the summary financial statement (on pages 1-7 and 10-33), which comprises summaries of the Directors’ Report and the Directors’ Remuneration Report and a summary of the information in the consolidated financial statements. The summary financial statement complies with the information requirements under the Companies (Summary Financial Statement) Regulations 2008. It does not contain sufficient information to allow as full an understanding of the results and the state of affairs of BP and of its policies and arrangements concerning directors’ remuneration as BP Annual Report and Accounts 2009. Shareholders may obtain a copy of BP Annual Report and Accounts 2009 online or on request, free of charge (see page 33). Outside the summarized financial statements (see pages 24-28), references within BP Annual Review 2009 to ‘profits’, ‘result’ and ‘return on average capital employed’ are to those measures on a replacement cost basis unless otherwise indicated. The table below reconciles profit for the year to replacement...
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...Part I: The Setup 11. Downing Nixon, Part II: The Execution 12. In from the Cold 13. Poppy’s Proxy and the Saudis 14. Poppy’s Web 15. The Handoff 16. The Quacking Duck 17. Playing Hardball 18. Meet the Help 19. The Conversion 20. The Skeleton in W.’s Closet 21. Shock and . . . Oil? 22. Deflection for Reelection 23. Domestic Disturbance 24. Conclusion Afterword Author’s Note Acknowledgments Notes Foreword When a governor or any state official seeks elective national office, his (or her) reputation and what the country knows about the candidate’s background is initially determined by the work of local and regional media. Generally, those journalists do a competent job of reporting on the prospect’s record. In the case of Governor George W. Bush, Texas reporters had written numerous stories about his failed businesses in the oil patch, the dubious land grab and questionable funding behind a new stadium for Bush’s baseball team, the Texas Rangers, and his various political contradictions and hypocrisies while serving in Austin. I was one of those Texas journalists. I spent about a decade trying to find accurate information on Bush’s record in the Texas National Guard. My curiosity had been prompted by his failure to adequately answer a question I had asked him as a panelist in a televised debate with Ann Richards during the 1994 gubernatorial campaign. Eventually I published three books on Bush and his political consigliere, Karl Rove. During Bush’s...
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...2nd chapter- Historical and Modern perspective of the Indian cement industry and it’s Evolution in the Modern era:- Introduction: Cement is an important Raw material in the construction industry. The industry is nearing 100 years of its existence in India, having started the first manufacturing Unit in 1914. It has evolved over the years in capacity, manufacturing scale, technology, environment protection, sustainability and in logistics. The industry has many opportunities to explore and many challenges to meet and overcome. Many changes, innovations are taking place in Manufacturing, Marketing, Logistics, location of units, industry structure, Process and Practices. The Historical perspective shows that given the right economic environment and the support, the cement Industry can attract good investment and capacity additions. The industry has learnt to deal with many environmental and sustainable issues and emerged as a responsible and mature Industry. The cement Industry has a great potential as the Indian per capita consumption (130 Kg) which is low and is set to increase over the many years and thereby the demand for this product will always be strong. The government and the private sector supported by the economic liberalization have rolled out enormous investments in infrastructure development and commercial/ industrial development. The increasing purchasing power of the vast middle class / double incomes of the nuclear families supported...
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...Syllabus Certified General Accountants Association of Canada 100 – 4200 North Fraser Way Burnaby, British Columbia Canada V5J 5K7 www.cga-canada.org © CGA-Canada, 2013 All rights reserved. These materials or parts thereof may not be reproduced or used in any manner without the prior written permission of the Certified General Accountants Association of Canada. Printed in Canada ISBN for an individual volume: 978-1-55219-599-4 About CGA-CANADA _________________________________________ CGA-Canada today The CGA designation focuses on integrity, ethics, and the highest education requirements. Recognized as the country’s accounting business leaders, CGAs provide strategic counsel, financial leadership, and overall direction to all sectors of the Canadian economy. The Certified General Accountants Association of Canada — CGA-Canada — sets standards, develops education programs, publishes professional materials, advocates on public policy issues, and represents CGAs nationally and internationally. The Association represents 75,000 CGAs and students in Canada, Bermuda, the Caribbean, Hong Kong, and China. Mission CGA-Canada advances the interests of its members and the public through national and international representation and the establishment of professional standards, practices, and services. A proud history CGA-Canada was founded in Montréal in 1908 under the leadership of John Leslie, vicepresident of the Canadian Pacific Railway. From the beginning, its objective...
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...More Praise for the Second Edition of Mergers & Acquisitions from A to Z ‘‘Sherman and Hart have done a terrific job assembling and synthesizing the basic, yet critical, issues to be aware of before/during/ after the deal. A well-rounded, up-to-date primer filled with pragmatic information that will serve as an excellent reference regardless of the reader’s M&A experience.’’ —Edward J. Hayes, Jr. Executive Vice President and Chief Financial Officer Quantum Corporation ‘‘After reading Andrew’s book, it became clear that his insight and processes assist entrepreneurs looking to expand their businesses. Andrew’s book offers guidance for non–U.S.-based businesses considering mergers and acquisitions in the United States.’’ —Nancye Miller, CEO, EO The Entrepreneurs’ Organization ................. 11539$ $$FM 10-19-05 09:48:09 PS PAGE i This page intentionally left blank PAGE ii MERGERS & ACQUISITIONS F ROM A SECOND TO Z EDITION Andrew J. Sherman and Milledge A. Hart American Management Association New York • Atlanta • Brussels • Chicago • Mexico City • San Francisco Shanghai • Tokyo • Toronto • Washington, D.C. ................. 11539$ $$FM 10-19-05 09:48:11 PS PAGE iii Special discounts on bulk quantities of AMACOM books are available to corporations, professional associations, and other organizations. For details, contact Special Sales Department, AMACOM, a division of American Management Association, 1601...
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...Contents IntroductionDay 1MarketingDay 2Ethics Day 3AccountingDay 4Organizational BehaviorDay 5Quantitative AnalysisDay 6 FinanceDay 7OperationsDay 8Economics Day 9StrategyDay 10MBA Mini-Courses ResearchPublic SpeakingNegotiating International BusinessBusiness LawTenDay MBA DiplomaAppendix: Quantitative Analysis TablesBibliographyMBA Abbreviation LexiconIndex AcknowledgmentsAbout the AuthorPraise for the Ten-Day MBACopyrightAbout the Publisher Introduction After I earned my MBA, I had a chance to reflect on the two most exhausting and fulfilling years of my life. As I reviewed my course notes, I realized that the basics of an MBA education were quite simple and could easily be understood by a wider audience. Thousands of Ten-Day MBA readers have proven it! Readers are applying their MBA knowledge every day to their own business situations. Not only useful in the United States, The Ten-Day MBA has been translated into many languages around the world. So many people are curious about business education, including doctors, lawyers, businesspeople, and aspiring MBAs. This book answers their questions. The Ten-Day MBA really delivers useful information quickly and easily. Current MBA students have written me that they even use the book to review for exams. Ten-Day MBAs are “walking the walk and talking the talk” of MBAs every business day. It’s proven that this book can work for you. Written for the impatient student, The Ten-Day MBA allows readers to really grasp the fundamentals...
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...Midterm Study Guide Fin 5170 Fall 2009 The exam will consist on multiple choices, and problems and may be an essay question. I will ask a maximum of two questions taken from the following material covered in class: Chapter 1 • Describe the concept of agency problems and different ways to ameliorate agency problems in a corporation Chapter 3 • Example 3.7 (pages 65-66) • Use the concept of arbitrage to explain the price of Security A in table 3.8, and Security B in table 3.9). Compute the risk premium of both securities. • Example 3.10 in page 72 • Example 3.11 in page 74 • Problems 14, 17, 18 (pages 78-80) You will also have the opportunity to answer several questions from the next pages: Chapter 1 - The Corporation 1.1 The Four Types of Firms 2) Which of the following organization forms for a business does not avoid double taxation? A) Limited Partnership B) "C" Corporation C) "S" Corporation D) Limited Liability Company Answer: B 3) Which of the following organization forms has the most revenue? A) "S" Corporation B) Limited Partnership C) "C" Corporation D) Limited Liability Company Answer: C 4) Which of the following organization forms accounts for the greatest number of firms? A) "S" Corporation B) Limited Partnership C) Sole Proprietorship D) "C" Corporation ...
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...Contents IntroductionDay 1MarketingDay 2Ethics Day 3AccountingDay 4Organizational BehaviorDay 5Quantitative AnalysisDay 6 FinanceDay 7OperationsDay 8Economics Day 9StrategyDay 10MBA Mini-Courses ResearchPublic SpeakingNegotiating International BusinessBusiness LawTenDay MBA DiplomaAppendix: Quantitative Analysis TablesBibliographyMBA Abbreviation LexiconIndex AcknowledgmentsAbout the AuthorPraise for the Ten-Day MBACopyrightAbout the Publisher Introduction After I earned my MBA, I had a chance to reflect on the two most exhausting and fulfilling years of my life. As I reviewed my course notes, I realized that the basics of an MBA education were quite simple and could easily be understood by a wider audience. Thousands of Ten-Day MBA readers have proven it! Readers are applying their MBA knowledge every day to their own business situations. Not only useful in the United States, The Ten-Day MBA has been translated into many languages around the world. So many people are curious about business education, including doctors, lawyers, businesspeople, and aspiring MBAs. This book answers their questions. The Ten-Day MBA really delivers useful information quickly and easily. Current MBA students have written me that they even use the book to review for exams. Ten-Day MBAs are “walking the walk and talking the talk” of MBAs every business day. It’s proven that this book can work for you. Written for the impatient student, The Ten-Day MBA allows readers to really grasp the fundamentals...
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