Vlerick Expertise in Accounting & Finance

While it is true that mergers and acquisitions have seen a moderate decline in the wake of the financial crisis, they continue to be important ways in which to grow or restructure businesses. Even though in the past it were primarily financially sound companies that took advantage of these techniques, nowadays an increasing number of acquisitions involve firms in financial troubles. Thorough academic analysis of such transactions is lacking, however. The research carried out by Evy Bruyland for her doctorate sets about filling this gap.

In August 2012, Apple's stock price hit $700, making it by far the most valuable company in the world with a market capitalization transcending $650 billion. 'Cash is king', is an awfully often heard management slogan, but what about keeping a colossal war chest of $121 billion? And how to frame the March 2012 payout pledge of $45 billion? This case study assesses Apple’s performance using a long-term perspective. It explores Apple’s tax payments and investigates the company’s capital structure, cash position and dividend policy.

The continued consolidation in the pharmaceutical industry has baffled many individuals. Confronted with major threats like patent losses, a depressed economic environment, soaring R&D costs, low productive development pipelines, pricing pressure and generic competition, Big Pharma has struck multibillion dollar deals like the Pfizer - Wyeth acquisition in 2009. In this case, we contrast small biotech with Big Pharma.

What happens once a venture capitalist (VC) has decided to invest in a portfolio company or entrepreneur? That’s the question professors Sophie Manigart (Vlerick Business School) and Mike Wright (Imperial College Business School, UK) tackle in their book “Venture Capital Investors and Portfolio Firms”.

At the end of 2008, Dutch automotive component supplier AutoParts was on the verge of bankruptcy, due to high leverage levels combined with lower revenues as a consequence of the worldwide economic crisis. This case discusses a private equity investment in a distressed company undergoing operational and financial restructuring. It strongly focuses on the valuation of a troubled company.

Discussions concerning private equity practices are often highly-charged – with proponents arguing that private equity deals create value, and critics characterising private equity firms as ‘sharks’ looking for quick profits at the expense of workers. Mike Wright, Nick Bacon, Rod Ball, and Miguel Meuleman offer a more balanced, systematic view of what private equity is all about with regard to employment relations.

Acquiring resources to pursue opportunities is a key challenge in the entrepreneurial process: you have the idea, now how do you fund its realisation?

This case study describes the benefits and drawbacks of going public, what the IPO process typically entails and the role that underwriting investment banks take up.

As the board of directors is ultimately responsible for a company’s success or failure, board members should be adequately informed not only about the company’s (financial) performance but about the risks that may impact the company’s strategy and results as well. Because today’s global economic climate indicates that the business world is more uncertain, risky and volatile than it has been in the past, Vlerick has launched a research project to study corporate practices with respect to reporting performance and risk to the board of directors.

The acquisition of US' most important beer producer by Belgian-Brazilian Inbev offers a comprehensive picture and excellent description of the numerous facets, challenges and issues mergers and acquisitions (M&A) bring along.