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Extended-form Case Study

Business valuation in M&A: The case of Family Dollar

Published on May 19, 2015   29 min

Other Talks in the Category: Finance, Accounting, & Economics

Hello. My name's Michael McDonald. This is a case study for Henry Stewart Talks. Today study is entitled Business Valuation in Mergers and Acquisitions: the Case of Family Dollar.
So what are mergers and acquisitions? Well, mergers and acquisitions is just a couple terms that describe the process in which one company acquires another company. Usually, this is in the realm of publicly traded companies, but it doesn't have to be. For example, sometimes publicly traded companies acquire small, or large, privately held companies. And sometimes, large privately held companies will even acquire publicly traded companies. There's a few hundred mergers and acquisitions every year. The size the U.S. Stock Market has shrunk in terms of number of firms from roughly 8,000 firms in the late 1990s to about 5,000 firms today. So much of that shrinkage in the market is a result of mergers and acquisitions. This implies, then, that is there's maybe 200 M&A deals per year on average. As a result it's very important to understand this topic. This is very common for large companies to have to deal with this type of issue.

Business valuation in M&A: The case of Family Dollar

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