Cover	1
	Zum Inhalt_Autor	2
	Titel	3
	Impressum	4
	Endorsements	5
	Preface	6
	Authors	7
	Content	8
	Part 1: Mergers & Acquisitions (M&A)	22
	Chapter 1: Why Mergers & Acquisitions?	22
	1.1 The Term "Mergers & Acquisitions"	22
	1.1.1 Mergers	23
	1.1.2 Acquisitions	27
	1.1.3 M&A and business alliances	27
	1.1.3.1 Forms of business alliances	27
	1.1.3.2 M&A versus business alliances	30
	1.2 Reasons for and success factors of M&A	31
	1.3 M&A of listed companies	34
	1.3.1 Challenges for listed companies	34
	1.3.1.1 Increased public perception	34
	1.3.1.2 Shareholder structure	35
	1.3.1.3 The target company's share price as an uncertainty factor	35
	1.3.1.4 The bidder company's share price as an uncertainty factor	36
	1.3.2 Legal characteristics	37
	1.3.2.1 The regulations of § 93 AktG	37
	1.3.2.2 The regulations of § 15 WpÜG	37
	1.3.2.3 The regulations of § 21 WpHG	37
	1.3.3 Takeover regulations	37
	1.3.3.1 Overview of the "Wertpapiererwerbs- und Übernahmegesetz" (WpÜG) (Security Purchase and Takeover Act)	38
	1.3.3.2 The bid process according to the WpÜG	39
	1.3.3.3 Squeeze out	41
	1.4 The process of M&A	42
	Chapter 2: Initial Phase (Phase 1)	44
	2.1 Pitch	44
	2.2 Choice of process	46
	2.2.1 The discrete approach	46
	2.2.2 Simultaneous bilateral negotiations	46
	2.2.3 Controlled competitive auction	46
	2.2.4 Full public auction	46
	2.3 Candidate screening and selection	48
	2.3.1 MBO or MBI	49
	2.3.2 Financial investors	50
	2.3.3 Strategic investors	51
	2.4 Advisers	53
	2.4.1 Investment banks	53
	2.4.2 Accountants and tax advisers	54
	2.4.3 Lawyers	55
	2.4.4 Other advisers	55
	2.5 Mandate letter	57
	2.6 Confidentiality agreement	63
	Chapter 3: Contacting Interested Parties (Phase 2)	67
	3.1 Documentation	67
	3.1.1 Anonymous short profile	67
	3.1.2 Information memorandum	67
	3.2 Non-binding offer	68
	Chapter 4: Financial Aspects in an M&A Sales Process (Phase 3)	74
	4.1 Due diligence	74
	4.2 Valuation	74
	4.3 Structuring	74
	Chapter 5: Legal Aspects in an M&A Sales Process (Phase 4)	78
	5.1 Negotiations	78
	5.2 Binding offer	81
	5.3 Purchase agreement and closing	81
	5.3.1 Purchase agreement	81
	5.3.2 Closing	83
	Part 2: Private Equity	85
	Chapter 1: What is Private Equity all about?	85
	1.1 Definitions	85
	1.2 Types of investment financing	90
	1.2.1 Early stage financings (venture capital financings)	91
	1.2.1.1 Seed financing	91
	1.2.1.2 Start-up financing	91
	1.2.1.3 First-stage financing	91
	1.2.2 Later-stage financings (private equity financings)	92
	1.2.2.1 Second-stage financing	92
	1.2.2.2 Third-stage financing	93
	1.2.2.3 Fourth-stage financing	93
	1.3 Occasions for private equity financing	95
	1.3.1 Expansion (development capital)	95
	1.3.2 Bridge financing	95
	1.3.3 Public-to-private (going private)	96
	1.3.4 Succession planning and displacement of existing shareholders	96
	1.3.5 Spin-off	97
	1.3.6 Private placement	97
	1.3.7 Turnaround	98
	1.3.8 Platform strategy or buy and build strategy	98
	1.4 Types of investments	100
	1.4.1 Open investments	100
	1.4.2 Indirect investments	101
	Chapter 2: Who drives Private Equity?	103
	2.1 Bidder groups for equity capital	103
	2.1.1 Captive funds	103
	2.1.2 Public funds	103
	2.1.3 Independent funds	103
	2.2 The role of banks in the private equity business	104
	2.3 Investors in private equity capital	106
	2.3.1 New funds raised according to capital sources	106
	2.3.2 Geographical distribution in Germany	107
	2.3.3 New funds raised according to financing phases	108
	2.3.4 Sectoral distribution of investment	108
	Chapter 3: How are Private Equity firms organized?	110
	3.1 Organizational aspects	110
	3.1.1 Structure of private equity companies	110
	3.1.1.1 Separation of fund and management	110
	3.1.1.2 Subsidiaries	111
	3.1.2 Management, control and advisory organs	111
	3.1.3 Inner organization	112
	3.2 The investment contract	114
	3.2.1 Basic types and significant parts of the contract	114
	3.2.2 Examples of wordings for certain clauses	116
	3.2.2.1 Options	116
	3.2.2.2 Pre-emptive right, right of first refusal, duty to supply information on offer	116
	3.2.2.3 Take-along rights of managers	117
	3.2.2.4 Drag-along rights	118
	3.2.2.5 Exit/Liquidation proceeds preference	118
	3.2.2.6 Antidilution clause	119
	3.2.2.7 Concentration of corporate activities	119
	3.2.2.8 Prohibition of competition and solicitation for seller	119
	3.2.2.9 Provisions regarding exit	120
	3.2.2.10 List of transactions requiring consent	120
	3.2.2.11 Reporting duties	121
	3.2.3 Adoption of existing contracts, important side contracts and covenants	121
	3.2.4 Combined investment contracts	122
	3.2.5 Participation in advisory and control organs	123
	3.3 Valuation of private equity investments	125
	3.3.1 Measuring performance: the internal rate of return (IRR)	125
	3.3.1.1 Derivation of the IRR	126
	3.3.1.2 Calculating the IRR using standard spreadsheet software	127
	3.3.1.3 Three levels of IRR advocated by EVCA	128
	3.3.2 Valuation principles and methodologies	130
	3.3.2.1 Valuation principles	130
	3.3.2.2 Valuation methodologies	132
	Chapter 4: How is Private Equity Business done?	139
	4.1 The working approach of private equity companies	139
	4.1.1 Organizational milestones	139
	4.1.1.1 Recruiting	139
	4.1.1.2 Fund raising	140
	4.1.2 Project-oriented milestones	141
	4.1.2.1 Deal-flow	141
	4.1.2.2 Due diligence	142
	4.1.2.3 Business plan	143
	4.1.2.4 Investment negotiations	144
	4.1.2.5 Investment support	145
	4.1.2.6 Exit	146
	4.2 Acquisition policy and risk management	152
	4.2.1 Quality controls in the project examination area	152
	4.2.2 Setting of competences and decision levels	153
	4.2.3 Selection of projects according to the criteria of company size	153
	4.2.4 Risk limitation through syndication	153
	4.2.5 Risk limitation through specialization	154
	4.3 Investment purchase abroad	156
	4.4 EVCA governing principles	157
	4.4.1 Governing principles	157
	4.4.2 Examples	158
	4.4.2.1 Initial considerations	158
	4.4.2.1.1 Early stage planning	158
	4.4.2.1.2 Investors and marketing	159
	4.4.2.1.3 Structuring	159
	4.4.2.2 Fundraising	159
	4.4.2.2.1 Initiators	160
	4.4.2.2.2 Target investors	160
	4.4.2.2.3 Origin of funds	161
	4.4.2.2.4 Investors	161
	4.4.2.2.5 Structure of the offer: terms of investment	162
	4.4.2.2.6 Structure of the documentation	163
	4.4.2.2.7 Presentation to investors	164
	4.4.2.2.8 Track records and forecasts	165
	4.4.2.2.9 Time period for fundraising	166
	4.4.2.3 Investing	166
	4.4.2.3.1 Due diligence	166
	4.4.2.3.2 Investment decision	167
	4.4.2.3.3 Structuring investment	167
	4.4.2.3.4 Possible means by which the fund may influence an investee business	168
	4.4.2.3.5 Investment agreements and documents	169
	4.4.2.3.6 Manager's consent to investee business actions	170
	4.4.2.3.7 Cooperation with co-investors and syndicate partners	170
	4.4.2.3.8 Co-investment and parallel investment by the manager and executives	171
	4.4.2.3.9 Co-investment and parallel investments by fund investors and other third parties	171
	4.4.2.3.10 Divestment planning	172
	4.4.2.4 Management of an investment	172
	4.4.2.4.1 Investment monitoring	172
	4.4.2.4.2 Exercise of investor consents	173
	4.4.2.4.3 Follow-on investments	173
	4.4.2.4.4 Under-performing investments	174
	4.4.2.5 Disposal of an investment	174
	4.4.2.5.1 Implementation of divestment planning	175
	4.4.2.5.2 Responsibility for divestment decision-making	175
	4.4.2.5.3 Warranties and indemnities	175
	4.4.2.5.4 Should cash always be taken on realization or can shares/earn-outs be accepted?	176
	4.4.2.5.5 Sales to another fund managed by the same manager	176
	4.4.2.5.6 Managing quoted investments	177
	4.4.2.6 Distribution	178
	4.4.2.6.1 Distribution provisions in constitution	178
	4.4.2.6.2 Timing of distributions	178
	4.4.2.7 Investor relations	179
	4.4.2.7.1 Reporting obligations	179
	4.4.2.7.2 Transparency	179
	4.4.2.7.3 Investor relations	180
	4.4.2.7.4 Investors' committee	180
	4.4.2.8 Winding up of a fund	181
	4.4.2.8.1 Liquidation	181
	4.4.2.8.2 Fund documentation	181
	4.4.2.9 Management of multiple funds	182
	4.4.2.9.1 Conflicts of interest	182
	4.4.2.9.2 Establishment of new funds	182
	4.4.2.10 Manager's internal organization	183
	4.4.2.10.1 Human resources	183
	4.4.2.10.2 Incentivization	183
	4.4.2.10.3 Financial resources	184
	4.4.2.10.4 Procedures and organization	184
	4.4.2.10.5 Segregation of fund assets	184
	4.4.2.10.6 Internal reviews and controls	185
	4.4.2.10.7 External assistance	185
	4.4.2.11 List of questions addressed in 'Examples' section	186
	Part 3: Acquisition Financing	189
	Chapter 1: What makes acquisition financing special?	189
	1.1 Definition and challenges	189
	1.2 The challenges of acquisition financing	190
	1.3 Acquisition financing vs.buy-out/buy-in financing	192
	1.3.1 Management buy-out (MBO)	192
	1.3.2 Management buy in (MBI)	193
	1.3.3 Leveraged buy-out (LBO)	193
	Chapter 2: Who drives acquisition financing?	195
	2.1 Acquisition financing – parties involved and their various motives	195
	2.1.1 Senior partners	195
	2.1.2 Strategic investors	196
	2.1.3 Financial investors (private equity investors)	196
	2.1.4 Management	196
	2.1.5 Financial institutions	197
	2.1.6 Advisors	198
	2.2 Main goals of debt capital investors	198
	2.2.1 Low debt capital ratio	198
	2.2.2 Collateral	199
	2.2.3 Marketability – loan syndication	199
	2.2.4 Return on debt	200
	2.3 Main goals of equity capital investors	201
	2.3.1 Return on equity	201
	2.3.2 Limited liability	201
	2.3.3 Contract flexibility	202
	2.3.4 Minimum expenses	202
	Chapter 3: How does acquisition financing work?	203
	3.1 Functionality of leveraged buy-outs	203
	3.2 Exploiting the leverage effect	204
	3.3 Improvement of cash flows	205
	3.3.1 Fixed assets and working capital optimization	205
	3.3.2 Strategic reorientation of the enterprise	205
	3.3.3 Efficient capital allocation	206
	3.3.4 Know-how transfer by financial investors	206
	3.3.5 Elimination of underperformance in the enterprise	206
	3.3.6 Asset stripping	206
	3.4 Improvement of company valuation	207
	3.4.1 Increase purchase price multiple due to improved returns and profits	207
	3.4.2 Increase purchase price multiple due to an optimized firm size	207
	3.5 Integral parts of successful leveraged buy-outs	208
	3.5.1 Attractive LBO market environment	208
	3.5.2 LBO proficient company	208
	3.5.3 Exit possibilities and increase in company value	209
	3.5.4 Management	209
	3.5.5 Track record and firm ethics of financial investor	210
	3.5.6 Fair price	210
	3.5.7 Fiscal optimization	212
	3.5.8 Feasible and sustainable financing structure	212
	Chapter 4: How to structure an acquisition	216
	4.1 Acquisition financing – structuring the project under company law	216
	4.1.1 Three-step takeover approach	216
	4.1.2 Respective interests of equity capital investors	218
	4.1.3 Respective interests of debt capital investors	218
	4.1.4 Legal restrictions	218
	4.2 Asset deal vs.share deal	219
	4.3 Acquisition financing – structuring the financing tools	220
	Chapter 5: How to determine the financial structure of an acquisition financing	224
	5.1 Determination of the debt service ability	224
	5.2 Acquisition financing – role of equity capital	227
	5.2.1 Share capital	227
	5.2.2 Shareholder loans	227
	5.3 Acquisition financing – role of outside capital	229
	5.3.1 Senior term debt	229
	5.3.2 Working capital facilities	232
	5.4 Mezzanine capital	235
	5.4.1 Particular characteristics of mezzanine capital	235
	5.4.2 Mezzanine capital in the context of acquisition financings	236
	5.4.2.1 Mezzanine capital – bridging the gap	236
	5.4.2.2 Mezzanine capital – payment structure and yield expectations	237
	5.4.2.3 Mezzanine capital – contractual structuring	237
	5.4.3 Different forms of mezzanine capital	239
	5.4.3.1 Equity mezzanine instruments	240
	5.4.3.2 Debt mezzanine instruments	241
	5.5 Capital structure and key figures	245
	Chapter 6: What kind of contracts are used in acquisition financing?	248
	6.1 Credit agreement	248
	6.1.1 Precedent conditions	249
	6.1.2 Representations and warranties	249
	6.1.3 Covenants	250
	6.2 Collateral agreement	253
	6.3 Consortium agreement	253
	6.4 Intercreditor agreement	253
	6.5 Purchase agreement	254
	Chapter 7: How is acquisition financing done?	256
	7.1 Pre-deal screening	256
	7.1.1 Business plan	256
	7.1.2 Due diligence	257
	7.1.3 Financing case	259
	7.1.4 Financing structure and term sheet	259
	7.1.5 Commitment letter	260
	7.1.6 Contract documentation	260
	7.1.7 Syndication	260
	7.1.8 Deal signing and closing	262
	7.2 Post-deal monitoring	262
	Part 4: Initial Public Offering	265
	Chapter 1: Why Initial Public Offering?	265
	1.1 Definition and reasons for an IPO	265
	1.2 Pros and cons	268
	1.2.1 Benefits and opportunities	269
	1.2.2 Drawbacks and continuing obligations	270
	1.3 Pre-IPO strategy	273
	Chapter 2: What is the roadmap for a successful IPO?	277
	2.1 Phase one: planning and preparation	277
	2.1.1 Checking the pre-requisites for going public	277
	2.1.1.1 Stock corporation	277
	2.1.1.2 Financial reporting	279
	2.1.1.3 Business plan	280
	2.1.2 Equity story	280
	2.1.3 Issue concept	283
	2.2 Phase two: structuring	285
	2.2.1 Recruiting syndicate banks	285
	2.2.1.1 Coordinators	285
	2.2.1.2 Syndicate structure	287
	2.2.1.3 Designations	289
	2.2.1.4 Beauty contest and selection criteria	290
	2.2.1.5 Agreements with coordinators	292
	2.2.1.6 Underwriting commissions	293
	2.2.2 IPO consultants	294
	2.2.3 Legal advisers	295
	2.2.4 Auditors and tax advisers	297
	2.2.5 IR/PR agencies	297
	2.2.6 Due diligence	298
	2.2.7 Valuation	300
	2.2.8 Prospectus	302
	2.2.9 Corporate governance	305
	2.3 Phase three: marketing: investor relations, pre-marketing, and road show	306
	2.3.1 Investor relations	306
	2.3.2 Pre-marketing	307
	2.3.2.1 Analyst meetings	307
	2.3.2.2 Research	307
	2.3.3 Road show	310
	2.4 Phase four: pricing, allocation and stabilisation	311
	2.4.1 Pricing	311
	2.4.1.1 Pricing methods	311
	2.4.1.1.1 Fixed-price method	311
	2.4.1.1.2 Bookbuilding	311
	2.4.1.2 Pricing structure	312
	2.4.1.3 Pricing mechanism	312
	2.4.2 Allocation	315
	2.4.2.1 Allocation to institutional investors	315
	2.4.2.2 Allocation to retail investors	316
	2.4.2.3 Employee equity compensation programs	317
	2.4.2.4 Friends & family program	317
	2.4.3 Stabilization	318
	2.4.3.1 Greenshoe (over-allotment option)	318
	2.4.3.2 Naked short	319
	2.4.3.3 Naked long	319
	2.5 Phase five: life as a public company	320
	2.5.1 Ad-hoc disclosures	320
	2.5.2 Insider information and compliance	321
	2.5.3 Transparency for capital markets	322
	2.5.4 Annual financial statements and quarterly reports	323
	2.5.5 Analyst conferences and research	325
	2.5.6 Corporation action timetable	325
	4.5.7 Investor relations	326
	Part 5: Going Private	329
	Chapter 1: Why go private?	329
	1.1 Definition of going private	329
	1.2 Going private and going dark	330
	1.2.1 Going dark	330
	1.2.2 Similarities and differences between going private and going dark	332
	1.3 Motives and success factors for going private	333
	1.3.1 Reasons for going private	333
	1.3.2 Benefits of going private	334
	1.3.3 Risks of going private	335
	1.4 Candidates for going private transactions	336
	1.5 Recent transactions in the U.S., U.K. and Germany	337
	Chapter 2: Going private in Germany	339
	2.1 What is the legal framework of going private transactions in Germany?	342
	2.2 How can delisting be done?	343
	2.2.1 Ex officio delisting	343
	2.2.2 Hot delisting	343
	2.2.3 Cold delisting	344
	2.2.3.1 Squeeze-out	344
	2.2.3.2 Integration	346
	2.2.3.3 Conversion, merger and corporate division	347
	2.2.3.4 Liquidation and sale of all assets	348
	Part 6: Due Diligence	350
	Chapter 1: Why Due Diligence?	331
	1.1 Definition of the term due diligence	350
	1.2 Motives for conducting a due diligence	351
	1.3 Objectives of the due diligence process	352
	1.3.1 Reducing the information asymmetry	352
	1.3.2 Identifying and examining the synergy potential	352
	1.3.3 Linking the strategic preparation with the integration period	353
	1.3.4 Providing reps and warranties	353
	1.4 Participants in the due diligence process	353
	1.5 Information sources for conducting due diligence	354
	1.5.1 Internal sources of information	354
	1.5.1.1 The data room	354
	1.5.1.2 Interviewing the management	354
	1.5.1.3 Site visits	355
	1.5.2 External sources of information	355
	Chapter 2: What is a data room?	356
	2.1 The data room	356
	2.2 Data room checklist	358
	2.2.1 Corporate organization	358
	2.2.2 Employees	359
	2.2.3 Litigation	359
	2.2.4 Pensions	359
	2.2.5 Taxation	359
	2.2.6 Agreements	360
	2.2.7 Insurances	360
	2.2.8 Financial documents	360
	2.2.9 Intellectual property	360
	2.2.10 Property	360
	2.2.11 Products/services/technology	361
	Chapter 3: What is done in a due diligence?	362
	3.1 The strategic audit	362
	3.1.1 Assessing the target company's forecasting process	362
	3.1.2 Steps for formulating a business plan	362
	3.1.3 What happens with the business plan?	363
	3.1.4 Challenging the business plan	363
	3.2 The financial audit	368
	3.2.1 Assessing internal controls	368
	3.2.2 Assessing annual reports	368
	3.3 The legal audit	372
	3.3.1 The legal foundation	353
	3.3.2 The legal risk factors	372
	3.3.3 The internal legal structure	373
	3.3.4 The external legal structure	373
	3.4 Conducting a tax due diligence	374
	3.4.1 The scope of the tax due diligence	374
	3.4.2 Past periods that were not covered by tax audits	375
	Part 7: An Overview of Corporate Valuation	377
	Chapter 1: Why Valuation?	377
	1.1 Valuation methods at a glance	377
	1.2 Occasions and purposes of valuation	379
	1.3 General framework	382
	1.3.1 Valuation: art or science?	382
	1.3.2 Value vs.price	382
	Chapter 2: How to carry out a valuation	384
	2.1 Valuation techniques	384
	2.2 Methods of individual valuation	384
	2.2.1 Net asset value based on reproduction values	385
	2.2.2 Net asset value based on liquidation values	385
	2.3 The Automotive Supplier Case Study	387
	Chapter 3: The DCF method	390
	3.1 Overview of the various DCF approaches	390
	3.1.1 The WACC approach	390
	3.1.2 Adjusted present value (APV) approach	392
	3.1.3 Equity approach (net approach)	393
	3.2 Calculation of the cash flows and terminal value	395
	3.2.1 Calculation of the operating free cash flows according to the WACC approach and the APV approach	395
	3.2.2 Calculation of the flows to equity in the equity approach	398
	3.2.3 Calculation of the terminal value	400
	3.2.3.1 The two-phase model for the determination of the value of a company with infinite lifetime	400
	3.2.3.2 Determination of the terminal value	401
	3.2.3.3 Determination of the detail planning horizon (detail planning period)	405
	3.3 Determination of the discount rate	407
	3.3.1 Determination of the discount rate subject to the respective DCF method	407
	3.3.2 Determination of the market value-weighted capital structure	409
	3.3.2.1 Determination of the current capital structure	409
	3.3.2.2 Target capital structure	411
	3.3.3 Cost of equity	414
	3.3.3.1 Determination of the interest rate of a risk-free investment	414
	3.3.3.2 Risk premium	419
	3.3.3.2.1 Systematization of risks	419
	3.3.3.2.2 Determination of the risk premium with the help of capital market theory models	420
	3.3.3.2.2.1 Market risk premium	421
	3.3.3.2.2.2 Significance of the Beta factor	422
	3.3.3.2.2.3 Structure of the Beta factor (dependence of the Beta factor on the leverage)	423
	3.3.3.2.2.4 Determination of the Beta factor out of past values	425
	3.3.3.2.2.5 Beta factors for non-publicly listed companies	428
	3.3.3.2.2.6 Determination of Beta factors for conglomerates	432
	3.3.3.2.2.7 Estimation of future Beta factors	433
	3.3.3.2.2.8 Model assumptions of the CAPM	433
	3.3.3.2.3 Agios in the calculation of the risk premium	434
	3.3.3.2.3.1 Agios for the unsystematic risk	434
	3.3.3.2.3.2 Mobility agio (liquidity agio, fungibility agio)	435
	3.3.3.2.3.3 Agio for personal liability	435
	3.3.3.2.3.4 Majority disagio (package agio)	435
	3.3.4 Cost of debt	438
	3.3.4.1 But where can the information on the risk premium which is currently valid in the market be obtained?	438
	3.4 Calculation of the enterprise value	442
	3.5 Period-specific WACC	448
	Chapter 4: The trading multiples method	451
	4.1 Basic principle and procedure	451
	4.1.1 The procedure of multiples valuation	451
	4.1.2 Creation of multiples	452
	4.1.3 Calculation of the company value	453
	4.2 Presentation of the different multiples	454
	4.2.1 Equity value vs.entity value multiples	454
	4.2.2 Trading vs.transaction multiples	456
	4.2.3 Overview of the different multiples	457
	4.2.4 Multiples based on balance sheet figures – price-book-value	458
	4.2.5 Multiples based on profit & loss statement figures	460
	4.2.5.1 Sales multiples	461
	4.2.5.2 EV/EBITDA multiple	463
	4.2.5.3 EV/EBITA multiple	464
	4.2.5.4 EV/EBIT multiple	465
	4.2.5.5 Price-earnings-ratio	466
	4.2.6 Cash flow multiples	467
	4.2.7 Non-financial multiples	468
	4.2.8 Consideration of growth	469
	4.3 Calculation of the multiples of the peer companies	471
	4.3.1 Selection of the peer companies	471
	4.3.2 Selection of the valuation period	475
	4.3.3 Selection of the multiple	477
	4.3.4 Collection and preparation of the information	478
	4.3.4.1 Market value of the equity and enterprise value	478
	4.3.4.2 Determination of the reference figures: annual report figures	479
	4.3.4.3 Determination of the reference figures: estimations	479
	4.3.5 Information preparation and multiples calculation based on the example of Beru AG	482
	4.3.5.1 Market value of the equity	482
	4.3.5.2 Enterprise value	482
	4.3.5.3 Calculation of past-oriented multiples	482
	4.3.5.3.1 Determination of the reference figures of the single multiples from the annual report figures	482
	4.3.5.3.2 Calculation of the multiples	485
	4.3.5.4 Calculation of future-oriented multiples	486
	4.3.5.4.1 Collection of the estimations	486
	4.3.5.4.2 Verification of the estimations	489
	4.3.5.4.3 Interpolation in case of a business year deviating from the calendar year	490
	4.3.5.4.4 Calculation of the multiples	492
	4.3.6 Market value vs.book value for minority interests and non-fully consolidated participations	494
	4.3.6.1 Consideration of minority interests in the example of Peugeot and Faurecia	495
	4.3.6.2 Consideration of non-consolidated participations based on the example of Renault and Nissan	497
	4.4 Multiples valuation for Automotive Supplier GmbH	499
	4.4.1 Determination of the peer companies' multiples	499
	4.4.2 Aggregation of the multiples	508
	4.4.3 Calculation of the company value of Automotive Supplier GmbH	512
	Chapter 5: The transaction multiples method	516
	5.1 Valuation conception	516
	5.2 Prevalence and application of the valuation method	516
	5.3 Thoughts on the practical application of transaction multiples	517
	5.3.1 Preferred multiples	517
	5.3.2 Determination of relevant comparable transactions	519
	5.3.2.1 Company-specific factors	519
	5.3.2.2 Transaction-specific factors	519
	5.3.3 Data collection and calculation	520
	5.3.3.1 Calculation of the transaction multiples	520
	5.3.3.2 Financial data of the valuation object	523
	5.4 Sector-specific issues and regional differences	524
	5.4.1 The relevance of the sector and the regional presence for transaction multiples	524
	5.4.2 Reasons and implications	525
	5.5 Takeover premiums	526
	5.5.1 Significance of the takeover premium	526
	5.2.2 Reasons for takeover premiums	528
	5.2.2.1 Undervaluation of the target company	528
	5.2.2.2 Compensation of synergy effects	529
	5.2.2.3 Manager hybris	529
	5.5.2.4 Control premium	529
	5.2.2.5 Bidder competition vs.exclusive negotiations	530
	5.6 Case study	531
	5.7 Critique of the valuation methodology	532
	Index	535