《国际企业并购》Ch13- Joint Ventures Alliances_Updated.pptVIP

Chapter 13: Joining Force Before Merging/Buying Out Globally Forces Driving Strategic Alliances Joint Ventures -- Case: Smartphone How valuable is Apple? How well is Apple Inc. actually performing? Asymco recently took a close look at Apple’s finances and used two popular valuation methods to deliver a verdict on the iPhone maker’s overall worth. Apple has a P/E ratio of 13.3. In comparison, rival mobile operating system maker Google Inc. has a P/E ratio of 29; Microsoft Corp. has a P/E ratio of 13.7, and Korea-based Samsung Electronics has a P/E ratio of 11. On the other hand, profit-lacking A Inc. has a P/E ratio of 1270. Apple’s P/E of 13.3 suggests that an investor who bought one share of Apple stock could expect to recoup that initial investment with earnings from the company over a period of 13.3 years. Any earnings after this period would be “profit” for the investor. P/E ratios are actually poor indicators of a company’s true value. Dediu noted, “A company can defer income (as Apple and Microsoft do), it can invest earnings (as Amazon does) and can otherwise avoid declaring it since it’s taxable.” Thus, the enterprise value to free cash flow ratio (EV/FCF) is a much more reliable indicator of a company’s overall value. Joint Ventures and Strategic Alliances Joint Ventures: When two or more companies combine assets or other efforts toward some common goal Usually a separate entity is created Very common in pharmaceutical industry – working with biotech companies Strategic Alliances: Less formal association Separate entity may not be created Example: Airline industry – airline partners Horizontal vs. Vertical Joint Ventures Vertical joint ventures: between buyers sellers Horizontal joint ventures: between companies in the same line of business (i.e., sell different products to each other’s customers “Beat the Odds in Cross-Border Joint Ventures” (HBR, Oct. 9, 2013) Five guidelines for global joint ventures… (1) Define a joint venture’s charter narrowly