List of Mergers:
In most cases, a merger can be a combination of two teams working together or one company taking over another. The former can be defined based on the number of shares, which can be calculated based on the value of each firm. In most cases, a merger is necessary to consolidate power in the market. On the other hand, a firm may wish to venture into other lines. In addition, the firm may wish to spend the least time establishing a market. Thus, the firm merges with the other and takes of what had been established by the other firm. The table below outlines recent mergers. Additionally, it delves into the values attached to each of the mergers.
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Explanatory Paragraph
Neiman Marcus is a luxury fashion store with headquarters in Dallas, Texas. The company is privately-owned, which makes it difficult to evaluate its market fair value. The aspect privatization ensures that the firm has no obligation to release their information to the public. In most cases, public companies need to divulge their information to the public in line with the set regulations. However, the company has a long history over which similar firms have emerged and gone public. However, Neiman's rivals have opted not to purchase other companies. Even when they do, they opt not to disclose the value attached to the target. Therefore, Neiman's market valuation can be estimated from industry reports, such as its market share.
Alternatively, it is possible to estimate the value of the company by looking at the price attached to targets outside the industry, but with similar operational size. In this case, it is imperative to note factors that include the number of employees and the value of the acquiring firm. The three companies listed in Table 1 were all purchased between 2010 and 2015, which makes the value attached a close estimate to what would be given to Neiman after considering for changes in inflation. Based on these values, an estimate of &12 billion can be attached to Neiman based on the fact that it is slightly bigger than KLA-Tencor, but not as big as SanDisk Corp when operating size is used
Works Cited
Reuters. Deals of the day-Mergers and acquisitions. 21 October 2015. 3 August 2016 <http://www.reuters.com/article/deals-day-idUSL3N12L57D20151021>.
