Value creation or destruction. Similarities and differences between the cross-border transactions of KUKA AG and Adam Opel AG

Inhaltsverzeichnis (Table of Contents)

• Abstract
• Contents
• List of Figures
• List of Tables
• List of Abbreviations
• A: Theoretical Part
• 1 Introduction
• 2 Business Alliances – Alternatives to M&A
• 2.1 Definition of business alliances
• 2.2 Forms of business alliances, benefits and drawbacks
• 3 Mergers and Acquisitions
• 3.1 Definition of and types of M&A
• 3.2 Motives, benefits and drawbacks of M&A
• 3.3 Advantage and disadvantages of M&A relative the alternatives
• 3.4 Corporate takeover market and common practice
• 4 The M&A Process
• 4.1 Stage 1 – Strategic analysis and concept
• 4.2 Stage 2 – Transaction
• 4.3 Stage 3 – Post merger integration
• B: Practical Part
• 5 Value definition and valuation basics
• 5.1 Definition of value
• 5.2 Restructuring value
• 5.3 Stakeholder vs. shareholder value and value drivers
• 5.4 Value of synergies
• 5.5 Value creation in cross-border M&A
• 5.6 Common calculation methods
• 5.7 Multiples (relative valuation)
• 5.8 Discounted cash flow
• 6 Pre-merger analysis and valuation by the example of KUKA AG
• 6.1 M&A market and process in China
• 6.2 Pre-merger analysis
• 6.3 Screening of KUKA AG
• 6.4 Valuation by transaction multiples
• 6.5 DCF Valuation of KUKA AG and Midea Group
• 6.5.1 Risk parameters and cost of capital (WACC)
• 6.5.2 Estimation of earnings and cash flows
• 6.5.3 Estimation of growth rate
• 6.5.4 Terminal value calculation
• 6.5.5 Summary and results of DCF model
• 6.6 Synergy projection and evaluation of takeover effects
• 6.7 Interim result
• 7 Pre-merger analysis and valuation by the example of the Adam Opel AG
• 7.1 Screening of Opel AG
• 7.2 Valuation of by CTA multiples
• 7.3 DCF Valuation
• 7.3.1 Estimation of risk parameters and cost of capital
• 7.3.2 Estimation of earnings and cash flows
• 7.3.3 Estimation of growth rate
• 7.3.4 Terminal value calculation
• 7.3.5 Summary and results of DCF model
• 7.4 Synergy projection and evaluation of takeover effects
• 7.5 Second interim result
• 8 Discussion and outlook
• References
• List of Appendices

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

The main objective of this master thesis is to analyze the similarities and differences between the cross-border transactions of KUKA AG and Adam Opel AG. The analysis aims to determine whether value was created or destroyed through these acquisitions and identify the factors that significantly impact value creation.

• Mergers and acquisitions as a strategic instrument to enhance competitive position.
• The role of cultural differences in cross-border M&A transactions.
• Valuation methods and their application in assessing value creation or destruction.
• Synergy potential and its importance in M&A transactions.
• The impact of the M&A environment and key industry trends on value creation.

Zusammenfassung der Kapitel (Chapter Summaries)

The theoretical part of the thesis provides a comprehensive overview of mergers and acquisitions (M&A), including alternative strategies like business alliances, various types of M&A, and the common practice of takeover processes. The M&A process is outlined in three stages: pre-merger, transaction, and post-merger integration. Chapter 5 focuses on the definition of value, valuation basics, and the importance of synergies in M&A activities.

The practical part analyzes the acquisitions of KUKA AG by Midea Group and Opel AG by PSA Group. Each analysis includes a pre-merger analysis, a valuation using multiples and discounted cash flow (DCF) methods, and a projection of potential synergies. The chapter also examines the M&A market and process in China and the specific challenges involved in cross-border transactions.

Schlüsselwörter (Keywords)

The key focus areas and concepts explored in this master thesis include cross-border mergers and acquisitions, value creation and destruction, valuation methods, synergy potential, cultural differences, and industry trends in the automotive and robotics sectors.