Redefining shareholder value : demystifying the valuation myth

Out of 3,727 completed deals between 2001 and 2014 worldwide, only 14 target companies were value creators in the natural resources sector in the year prior to acquisition. In this book we redefine shareholder value in the current economic climate, in conjunction with the corporate debt fueled by the corporate race. Measuring shareholder value has become crucial in the current economic environment, especially following the consistent pressure from institutional shareholders on companies to create shareholder value in an adverse economic environment. Maximizing the companys value will make the company less appealing to hostile takeovers. The market for corporate control is essential to producing wealth and positive risk-adjusted NPV investments. Takeovers are capital market mechanisms designed to control the conflicts of interests between shareholders and managers of the company. This book, is targeted to professionals in the mergers and acquisitions industry.