Fueled by industry consolidation, a wave of private equity investment, an imperative to expand market share worldwide and a need to make the most of low-cost manufacturing and services, U.S. companies are undertaking mergers and acquisitions (M&A) abroad as never before. Increasingly, this M&A activity is taking place in emerging markets.

A key consideration for decision makers is the valuation implications of the transaction. Each deal must build on a valuation of the target company, which involves compiling data, projecting cash flows and forecasting synergies. In connection with accretion dilution estimates and post-merger accounting, the valuation of intangible assets becomes a critical step in the deal process. Valuation complexities may quickly overwhelm executives, particularly as they realize that the rules and methodologies used in established economies do not always apply.

Valuation in Emerging Markets, attached below, discusses how valuations in emerging markets require a different approach, one that emphasizes flexibility and resourcefulness and will offer dealmakers suggestions for improving the process, especially with respect to intangible asset valuation.

Learn more in the attached article.