Who pays when giants fall? Union de banques suisses´s acquisition of credit Suisse - the badwill effect of the transaction of credit Suisse

Abstract

The case study helps to understand the multifaceted nature of Mergers & Acquisitions by examining the acquisition of Credit Suisse through UBS. Facilitated by the Swiss authorities to avert a potential financial crisis, regulatory intervention played a pivotal role in shaping the transaction. By examining regulatory decision-making, stakeholder management and financing structures, the case study assesses the post-deal risk distribution and identifies potential winners and losers of the deal. Further, the case instructor can access an accounting and market analysis of Credit Suisse`s financial health pre-merger, an alternative valuation using the Dividend Discount Model and an assessment of the shareholder value effect.