Category: Mergers & Acquisition
M&A: When two plus two is five or three or …
Mergers & Acquisitions (M&A) is a way for companies to expand rapidly and much faster than organic growth would have allowed.
View Post
What is the correct company value?
Value is not the same as price. Price is what the market is willing to pay. Even if the value is high, most want to pay as little as possible.
View Post
The Probability of Gain and Loss
Every item written into a firm’s profit and loss account and its balance sheet is a stochastic variable with a probability distribution derived from probability distributions for each factor of production.
Risk, price and value
Having arrived at the probability distribution for the value of equity (see full story) we are able to calculate expected gain, loss and their probability when investing in a company where the capitalized value (price) is known.
