M&A: marvels of interplay between strategy and finance

Marvel results -

Are just a starting point - the key thing is the future strategy

Are straightforward to understand as a basis for extrapolating the future

One big blockbuster changes everything

Are so confusing they are practically useless

The first step in exploring the value of Marvel was -

To identify two parameters for SGR and OPM which produce the existing share price

To build an entirely different business model

To ask what went wrong in 2004 and 2005

To build future strategies

Marvel could get into -

Restaurants

Theme parks and computer games

Fan clubs

Theme pubs

Marvel -

Did not need to defend itself

Did the best thing by allowing (after a brief fight), a takeover

Could have put up a much better defence

Did an enviable defence

The range in valuation was -

Very small

Very large

Small

Large

The financial numbers -

Need concrete strategies with incremental cash flows and action plans

Need concrete strategies with incremental cash flows and action plans, plus resilience testing

Can be worked out just through changing the percentages

Need concrete strategies with incremental cash flows

To evaluate the strategy Marvel -

Must also think about its competitors and substitutes

Needs only to think about its own strategy

Must also think about product life cycle effects

Must also think about its competitors and substitutes, and product life cycle effects

Actual improvements in performance will come from -

Leveraging its strategic assets

International development

Market research

Competitor research

In order to justify the effort and risk of buying Marvel, Disney needs to -

Achieve results equivalent to those which would give a 50 USD share price

Marginally beat that share price

Generate economic value significantly more than that - ie over 62 USD

Avoid deterioration

Improvements in economic value added can be estimated -

Both

By also thinking about any extra revenue costs

By also thinking about any capital expenditure

From assumed shifts it raw SGR and OPM alone

M&A: marvels of interplay between strategy and finance

Marvel results -

The first step in exploring the value of Marvel was -

Marvel could get into -

Marvel -

The range in valuation was -

The financial numbers -

To evaluate the strategy Marvel -

Actual improvements in performance will come from -

In order to justify the effort and risk of buying Marvel, Disney needs to -

Improvements in economic value added can be estimated -

You scored

0

out of

0

Test passed. Enter your details to download your certificate. Your certificate will also be sent to you by email.

Our sites

Useful links

Using this site

Contact us

Planned system updates