After several years of inactivity, the mergers and acquisition market came alive in mid-2003. Since that time, there have been numerous significant transactions. Their objectives were diverse, including filling critical capability gaps, achieving synergies and economies of scale, acquisition of tax losses and fending off an income trust structure and replacement of management. As sectors continue to consolidate, observers will likely see another strategic motive - the acquisition of assets to protect existing revenue base (protection value). From both a theoretical and practical perspective, the acquisition of an asset that can effectively obstruct the entry of a major competitor and prevent the erosion of its market share has significant value. Risk-adjusted discounted cash flow valuation techniques are the most appropriate method to determine the right price for protection benefits.

Acquisitions & mergers
Strategic planning