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Index > O - Pg. 222

222 Index Minimum offer price , 10­11 Minority investment . See Equity partnership Mittal Steel Co. , 201­203 Modigliani­Miller theorem , 150 Morgan Stanley , 3 Morris Trust transactions , 121­122 Mortgage bonds , 155­156 MTU Friedrichshafen , 87 N Negative covenant , 154 Negotiation , 1 , 15­28 concurrent activities , 18 deal structuring , 19­24 due diligence, conducting , 24­28 financing plan/strategy, developing , 28 key participants accountants , 4­5 investment bankers , 3­4 lawyers , 4 senior/operating management , 2­3 negotiating strategy, developing , 16­18 refining valuation , 18­19 Net asset value , 137 , 143 Net operating loss (NOL) , 117­118 News Corp. , 31 , 116­117 , 190­192 Noncash payment , 56­58 Nondisclosure agreement . See Confidentiality agreement Nonrecurring gains/losses , 18­19 Nortel Networks , 146 Northrop Grumman , 71­72 No-shop agreement , 14 Novartis , 66 O One-tier offer , 184 Operational intangibles , 141 Owner carry back . See Seller financing Owner financing . See Seller financing Ownership distribution, earnouts based on , 64 Ownership transfer in corporate structure , 36­37 P Paid-in-kind (PIK) preferred stock , 159 Partnership: general , 41 limited , 42­43 equity , 44 leveraged , 122 agreement , 40 structures , 40­43 Payment, form of . See Form of payment Pecking order theory , 151 Permanent financing , 155 Pfizer , 1 , 28­30 , 84 Pixar Animation , 99 Pledging receivables and inventory , 153­154 Poison pills , 190­192 Porter framework, modified , 5 , 6 Postclosing organization , 20 and acquisition vehicle . See Acquisition vehicle and postclosing organization choice of , 22­23 Postclosing price adjustments , 59­61 Postoffer defenses , 191 , 197­200 corporate restructuring , 200 employee stock ownership plans (ESOPs) , 198 greenmail , 197 leveraged recapitalization , 198­199 litigation , 200 share repurchase/buyback plans , 199 white knight , 197­198 Potential sources of value, identifying , 26 Preclosing covenants , 93­94 Preferred stock , 159 Prenegotiation , 5­13 firm, profiling , 7­8 initial contact , 13­15 confidentiality agreement , 14 letter of intent (LOI) , 14­15 term sheet , 14 market/industry, profiling , 5­7 price range of an initial offer, estimating , 10­13 Pre-offer defenses , 190 , 191 golden parachute , 196­197 poison pills , 190­192 shark repellents , 192­197 Present value , 10­11