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Dyuti
- Hyderabad, Andhra Pradesh
- India
- Analysing Banking & Real Estate…
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Dyuti's Discussions
On Mergers & Acquisition Analysis
Replied May. 30, 2009
On Mergers & Acquisition Analysis
Replied May. 26, 2009
On Mergers & Acquisition Analysis
Replied May. 26, 2009
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may be you could do an analysis when Maybank and CIMB combine. that would be interesting :)
how do one charge for this service in india? just curious...
Dyuti!
Remember the GTB OBC amalgamation! All the "quant" formulas wont do in FIs and banks! Digest the terms of this amalgamation. We'll connect after that for valuation exercises. Here go'es!
YAWN!
Reading the RBI'S TERMS WIL GIVE YOU ANY CENTRAL…
1. Consider Tier II capital as debt.
2. Hybrids need to be understood before we can decide how much of the liability is debt and how much equity. For example suppose we have convertibles maturing in 3 years. Necessarily they will offer less coupon (…
i never think DCF is good for financial firms.
For valuation, i suggest u projecting the balance sheet and give it a 2x PB ratio of year 2009.
sorry i never made such models of banks.
Exactly.
Regardless the buyout during the financial crisis, most deals about commercial banks are paid over valuated.
Synergy analysis is the key.
Very often bank valuation is based on comparables (on other deals), such as number of equity book value. Say, if in average banks are sold at 2-3x equity book values, you should not pay 5 equity book values.
Dyuti:
.....after you digest this we will look at the various valuation avenues covering both listed and unlisted entity.
The condotions in the term sheet will be a crucial part of the hypothetical take-over.
Hic....
Dyuti:
If your'e in India feel free to interact on this as there are many things like:
The DSB returns
The BSR Returns
Transgressions of exposure limits..... confirmation post-facto; quality of Board Agendas
Composition of Board of Directors and the…
Dyuti:
When a FI wishes to take over a bank, valuation is the LAST step!!
The first overview would be as under:
Peruse the past five years Central Bank Audit and Ratings report
Check five years balance-sheet audit reports
Satisfy yourself with the c…
Value, ultimately, comes from cash flow. Ratios indicate where the bank is creating or destroying value and how efficient it is compared to other banks. Ratio analysis is a big help in understanding the cash flows and in forecasting them.
Cost of c…
It would be really useful if you can share your banking merger - acquisition project when your done
many thanks
george
I would not favour detailed (what you call granular) models for valuing banks; one may get lost in data. But details are required for assessing synergies.
I think Dyuti, the topics u r listing above are the feasibility study on the project. How this will help in combining the synergies. You can do the SWOT analysis using this.
But the actual ratio will be the swap ratios of the share price. i.e to acq…
Profile Information
- Profession:
- Service
- Current Role:
- Analysing Banking & Real Estate sectors
- Past Experience:
- Deloitte (Strategy & Research), HCL Technology (Capital Market division), ICRA Online, ITC Limited.
- Education:
- Cost Accountant, CA (pursuing the last group)
- Current Location:
- Hyderabad
- Interested In:
- career opportunities, consulting offers, knowledge and training
Comment Wall (7 comments)
- At 11:33pm on March 9, 2009,
Dyuti said…
- dyutib@gmail.com
- At 5:05am on March 7, 2009,
Dipu James said…
- send me your mail id
- At 5:04am on March 7, 2009,
Dipu James said…
- send me your mail id
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