tag:blogger.com,1999:blog-15050449.post112552195955218968..comments2023-09-28T08:08:12.940-07:00Comments on Corporate Tool: Sale of AT&T WirelessJosh Kinghttp://www.blogger.com/profile/00972029304959423978noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-15050449.post-1126112317037772332005-09-07T09:58:00.000-07:002005-09-07T09:58:00.000-07:00Take a look at my earlier posts on objectivity and...Take a look at my earlier posts on objectivity and credibility. You can't afford to look like you're gaming the process, and most senior managers can quickly look at major drivers in a DCF model and ask whether they're consistant with those used in the company's internal long-range plan. They'd better be - the acquisition team will be quickly marginalized or replaced if perceived as driving for deal flow above all else. <BR/><BR/>Of course, if senior management has "deal fever", they may ask you to change your models as you've described. There will be arguments that the combined company will have a lower risk profile or higher growth rate, thus justifying adjustments to the model. Sometimes those arguments will be valid, but often they won't.Josh Kinghttps://www.blogger.com/profile/00972029304959423978noreply@blogger.comtag:blogger.com,1999:blog-15050449.post-1126104781734838752005-09-07T07:53:00.000-07:002005-09-07T07:53:00.000-07:00How do you deal with the temptation of tweaking th...How do you deal with the temptation of tweaking the discount rate or growth rate when trying to justify a buy or sell price? Wouldn't it be relatively easy to fall into the trap of making an adjustment here or there so that your model spit out the price that the acquisition team wants to see?Parkitehttps://www.blogger.com/profile/04023148878618107102noreply@blogger.com