Cantillo Simón, Miguel

Calculating Synergies From a Merger

Cantillo Simón, Miguel; Vergara Alert, Carles

 

How does one know if a corporate merger will create value? More importantly, how much will the merger be worth? These are tricky questions to answer because the value of any synergies only appears over time. Even so, the authors suggest three ways of making a reasonable approximation.

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To Sink or Swim When Floating Stock

Cantillo Simón, Miguel; Corbishley, Nicholas

 

While it's understandable why some companies, like Facebook, might choose to go public at this stage of their growth, the IPO process itself is costly and time-consuming, and can transform a firm beyond recognition. This article discusses the motivations behind IPOs, how they work in practice, what companies can hope to gain from going public, and, just as importantly, the risks they might face by doing so.

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Private Banks as Corporate Shareholders: Lessons from History

Cantillo Simón, Miguel

 

In the U.S. in 1906, the prominent private bank Kuhn Loeb - prompted by the scandal of the Armstrong Investigation - withdrew from the boards of all non-bank corporations. This historical announcement changed the course of corporate governance, and ultimately prevented private banks from being activist shareholders in the United States. In the paper "The Value of Private Banks in Corporate Governance: Evidence From the Armstrong Investigation," IESE finance professor Miguel Cantillo looks at Kuhn Loeb's lessons and shows why it made sense to phase out financial capitalism, even though it had undeniable benefits to some shareholders.

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