This was written by Hoang Minh – Cambridge Econ Student and me Just Eat Takeaway (JET), a European food delivery service, announced to buy Grubhub for $7.3 billion on June 10, 2020. This deal would allow JET to set a foothold in the United States and create one of the world’s largest meal-delivery companies as…
Tag: Mergers and acquisitions
Journal Report 14: Today-I-learn about Asset acquisitions and Asset Divestitures
3 major methods of facilitating acquisitions Asset acquisitions: purchase only assets; the higher price paid for the assets is amortized and deductible for tax purposes. Stock acquisitions: purchase the whole entity, including all assets and liabilities; the higher price paid, specifically goodwill, is not amortized. 338(h)(10) elections: best of both worlds; available to buyers of…
Journal Report 11: The Best Acquisitions of All Time
Methodology The list is ranked by the estimate of the absolute dollar return to the acquirer. Acquisitions must be at least a majority stake in the target company. Revenue multiples are used to estimate the current value of the acquired company, equal its current estimated revenue x the market cap-to-revenue multiple of the parent company’s…
Ep 59: Why CEOs Surround M&A Announcements with Unrelated Good News
What is this about? Mergers and acquisitions (M&A) are among the most consequential strategic decisions managers make. But markets often respond negatively to acquisition announcements, which means investors are skeptical about the transactions, their terms, or managerial motivations. Prior research suggests such skepticism may be well-founded: In quarters following acquisitions, CEOs in the U.S. are…
with HT 