Module V· Premium / ROIC / Value Creation AnalysisIntermediate
Question

What is analysis at various prices (AVP), and how do you use it in a pitch?

Answer

AVP shows transaction outputs at different offer prices or premiums: purchase price, implied multiples, EPS accretion/dilution, leverage, ROIC, goodwill, and required synergies. It helps the board understand how far it can bid before economics break. It is especially useful in auctions and hostile / competitive situations.