Free financial advice

Archive for November, 2010

16 Nov

Overestimation of Synergies

Synergy is a peculiar word—depending on the context it either stands for the pipe dreams of management or a hard-nosed rationale for a deal. Often it is a little of both. Consider the following example: A large health services company paid several billion dollars for a more profitable company in a related industry segment. Given [...]

16 Nov

Fumdamental risk versus systematic risk

Some might expect a conflict between the market measure of risk (systematic risk) and the fundamental determinants of risk (business risk, and so on). A number of studies have examined the relationship between the market measure of risk (systematic risk) and accounting variables used to measure the fundamental risk factors, such as business risk, financial [...]

© 2012 Free financial advice | Powered by BA