Mergers: Risks, Rewards and Considerations

Mergers can be a significant element of any business’ successful growth strategy. Companies looking to enter a new market, gain a broader reach in their current market, enhance their offering of products and services, or get a leg up on the competition, could look to mergers as a potential solution. Of course, the potential risks and rewards should be carefully weighed prior to any agreement. Continue reading Mergers: Risks, Rewards and Considerations

The Merton Model

The Merton model is a common credit risk model used for evaluating a firm and determining if it will remain solvent.  This simple model is specifically useful in situations where traditional DCF and relative valuation models are ineffective, such as distressed firms, natural resource firms, and startups/high growth firms whose value is primarily based on their rights to a product, service, or innovative technology.  Continue reading The Merton Model