Title Details

Enrique R. Arzac is Professor of Finance and Economics at the Columbia University Graduate School of Business, Director of the Merger, Buyouts, and Restructuring program for executives at Columbia Business School, and Co-Director of the Merger and Acquisitions program for executives at London Business School. He is the author of many academic articles in financial economics and has been consultant to corporations and financial institutions in North and South America and Europe. He is a director of the Adams Express Company, Petroleum and Resources Corporation and Credit Suisse Asset Management funds.

PART ONE: THE TOOLS OF VALUATION.

1. A User’s Guide.

2. Forecasting and Valuation of Free Cash Flows.

3. The Equity Premium and the Cost of Capital.

4. Metrics and Multiples.

5. Economic Value Added.

6. Valuation with Changing Capital Structure.

7. Debt Capacity for Acquisition Financing.

8. Valuing Entry and Exit Options.

PART TWO: MERGERS, ACQUISITIONS AND BUYOUTS.

9. Merger and Acquisitions.

10. Deal Making with Differences of Opinion.

11. Special Offer Structures: Price Guarantees and Collars.

12. Acquisitions in Developed and Emerging Markets.

13. Leveraged Buyouts.

PART THREE: RECAPITALIZATIONS AND RESTRUCTURING.

14. Recapitalization of Troubled Companies.

15. Asset Restructuring.

Appendix A: Financial Options.

Appendix B: Valuation Aids Software.

Appendix C: Modeling Mergers and Buyouts with DealModelerTM: User's Manual.

Technical Notes.

References.

Index.

“Specialist analysis of the situation in the US that combines both theory and practice…” (Long Range Planning, 38, 2005)"Enrique Arzac has provided an excellent analytical framework for the LBO business."
—William T. Comfort, Chairman, Citigroup Venture Capital

"Enrique Arzac has created a masterpiece—his work combines the theoretical with the practical. He has created an invaluable reference guide that is thoughtful, complete and very user friendly. He provides insight into the theory behind core valuation, LBO’s, and options pricing, which creates the foundation for mergers, buyouts and restructuring. In addition to the theoretical, he provides practical insight into deal structuring and deal dynamics. His work should be standard material for all incoming associates."
—James P. McVeigh, Managing Director, Corporate & Investment Banking, Banc of America Securities

"This first-rate book of applied financial theory provides the tools for financial institutions and capital market participants seeking a methodology for comparing, contrasting, and evaluating investment opportunities and options. By incorporating over 30 years of research, teaching, and practical experience, Professor Arzac has created a text that us not only timely, but timeless in its usefulness to anyone interested in learning the applications of financial theory for the best and most useful allocation of the scarcest economic resource in the world—capital."
—William W. Priest, Co-Managing Partner, Steinberg, Priest and Sloane Capital Management and Former Chairman and CEO of Credit Suisse Asset Management

"There are two important aspects in graduate business education. The first is acquiring a thorough understanding of the theories of modern finance and the second is acquiring an appreciation for how these theories can be applied to important decisions. Enrique Arzac has taken on this task and made it a successful venture for readers of this book. Unlike other texts on valuation, he explains the reasons for the process and sequence that he recommends rather than just providing the ingredients and the recipe without explanation. This is a welcome addition to the literature in applied corporate finance."
—Joel M. Stern, Managing Partner, Stern, Stewart & Co.