Writer’s choice

Please respond to the following discussion post.1. Jamie and all,SVAR is an acronym for Shareholder Value At Risk. It is the goal of the firm to maximize shareholder wealth or value. It is the CEOs and all senior management’s responsibility to make sure the firm is acting in such a way that shareholder value is being protected. That requirement demands a team of people, a methodology and a toolset that are all founded on data transparency, accuracy, openness and objectivity. Proper risk management is impossible without them. Since this course is concentrating on M&A, we are interested in SVAR as it applies to an M&A. Take a look at the link below for more information to help understanding. http://www.projectsmart.co.uk/shareholder-value-at-risk-is-a-key-measure-in-major-change-projects.html Dr. Ahmed2. Rappaport and Sirower (1999) distinguish two different calculations for the percentage of a seller’s market value and buyer’s market value that is being risked in an M&A transaction. SVAR, or shareholder value at risk is that of the acquirer; it translates to the premium the acquirer is paying divided by its own market value just before the acquisition is announced (Rappaport & Sirower). Conversely, the tool used by the target is “premium at risk,” and it determines the risk in the simple figure, or percentage of stock held by the seller in the new company. Rappaport, A., Sirower, M. (1999, November-December). Stock or cash?: The trade-offs for buyers and sellers in mergers and acquisitions. Retrieved from https://hbr.org/1999/11/stock-or-cash-the-trade-offs-for-buyers-and-sellers-in-mergers-and-acquisitions

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