Critiquing a recent deal in your sector
Question
Describe a recent transaction in this industry. Then keep naming weaknesses or risks in it.
Short answer
Prepare one deal in depth. Explain the parties, price, structure and rationale, then work through problems systematically: valuation and premium paid, financing and leverage, integration and synergies, regulatory or antitrust risk, and the market reaction. The test is depth and staying composed under repeated questioning.
Adapted from Crack, Heard on the Street, Q5.3.11, p.51; question and answer rewritten by SelfMadeQuant.com.
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