VALUATION AND FINANCIAL DUE DILIGENCE OF PT MD ENTERTAINMENT TBK ACQUISITION OF PT NET VISI MEDIA TBK

• Main Author: Nafis Hestopo, Dzakwan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/87250
• Institution: Institut Teknologi Bandung

This study analyzes the value and financial due diligence associated with PT MD Entertainment Tbk's (FILM) acquisition of an 80,05% interest in PT Net Visi Media Tbk (NETV). The creative economy of Indonesia, especially in the film and media sectors, has demonstrated substantial development potential, making considerable contributions to GDP and employment. Nonetheless, difficulties in obtaining financing and shifting market conditions, including the shift to digital transmission, have posed hurdles for media enterprises such as NETV. This research examines the financial due diligence associated with MD Entertainment's horizontal purchase, a prominent entity in Indonesia's film sector, seeking to diversify into television broadcasting in light of NETV's financial difficulties. The study used approaches like Discounted Cash Flow (DCF) analysis, financial ratio assessment, and synergy evaluation to ascertain the fair market value of NETV and the possible synergies that MD Entertainment could realize from the acquisition. The results indicate that the acquisition had strategic importance, allowing MD Entertainment to enhance its market presence and fortify its standing in the creative economy. Nonetheless, the report underscores the concerns linked to NETV's deteriorating financial performance and the overarching issues within the television advertising industry. This analysis enhances the comprehension of mergers and acquisitions within the creative sector, providing actionable insights for stakeholders seeking to maximize financial and strategic results.