What is it about?

Among the analytics used t day to evaluate proposed M&A and private equity deals are activity-based costing, supply chain network design and marketing-mix modeling. This article describes how, by integrating all three techniques in one advanced analytical analysis, not only can the maximum profit of the deal be determined but also the maximum ROI of total sales/marketing expenditures be assured as well as the optimally feasible supply chain required to make and fulfill the forecast required for maximum profit.

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Why is it important?

Many M&A and private equity deals go awry because of faulty analysis. And, even if the analysis is good, it is necessarily sub-optimal. All such problems are can now be addressed and the article describes how and why. The how is to build a model of the deal's proposed income statement. The why is that model is then solved prescriptively (what is the best outcome) providing the results described above,

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This page is a summary of: Uncover theTruly MaximumProfit Opportunity of a Prospective M&A Deal: Next Generation M&A Financial Analysis Capability, Journal of Corporate Accounting & Finance, December 2015, Wiley,
DOI: 10.1002/jcaf.22118.
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