Mr. Mayur Desai, Director, PwC, India was invited as a keynote speaker for a seminar at N. L. Dalmia Institute of Management Studies and Research.
It was their great pleasure to have Mr. Mayur Desai, Director, PwC, India as a keynote speaker for an enchanting seminar on ‘Mergers Case – Concept to Completion’ on September 10, 2016, hosted by Finance Forum of N. L. Dalmia Institute of Management Studies and Research.
The seminar started with Mr. Desai explaining the three facets of mergers which are - deal making, valuation and internal restructuring. He explained the role of investment bankers, consultants, PwC as well as the acquirer during the entire merger process. He explained that an investment banker not only manages the deal but in many cases also helps in identifying a potentially successful target company for their clients.
The speaker then moved on to explain the various valuation tools used such as DCF, NAV, EV/EBITDA and PE multiple. He emphasized that a combination of two or three is often more insightful. He educated the students about the concept of illiquidity discount and control premium and how these factors affect the final deal price. He also elaborated upon the various factors to be considered for transaction structurings such as flexibility of cash flows, flexibility to raise funds, structural synergies, ease of implementation and taxation and regulatory compliance. He also touched upon concepts relating to overseas acquisitions. He cited various examples of past mergers and acquisitions to impart an understanding of how theoretical concepts are applied in the industry.
The second segment of the seminar consisted of the detailed illustration of a real case where the speaker was a part of the team managing the acquisition. He explained the entire process step by step from planning to integration. He also explained the significance of analyzing the components of EBITDA to arrive at a sustainable EBITDA and using that for valuation purposes and also the criticality of financial due diligence findings.
He explained the various funding options available to the acquirer such as internal accruals, stock payment, ADR/GRD, FCCBs, all equity, and ECBs. He emphasized that post-merger integration is essential for the success of the deal and this is the area which the acquiring company must work upon.
He actively questioned and interacted with the students thus ensuring maximum participation from them. The seminar ended with Prof. Dr. Anil Gor felicitating the guest.
Source: Hiral Bhuptani, HTCampus Specialist
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