The Premium Trap — Rheinwerk's Bid for Voltura

A four-round, advanced Corporate Finance & behavioral-strategy simulation set inside Rheinwerk Automation AG, a Frankfurt-listed industrial-automation group (EUR 1.8B revenue, EUR 306M EBITDA, EUR 240M net cash, BBB+). Voltura Robotics GmbH — the Munich warehouse-robotics target the celebrated serial-acquirer CEO Lukas Brandt has chased for three years — goes live with a 21-day binding-bid deadline.

Brandt walks into the war room and says "Whatever the model says, we are not losing Voltura." The anchor is set before the analysis begins.

Playing the acquiring leadership team, you (1) DIAGNOSE the target and the bias: build Voltura's defensible standalone EV up from EUR 1.0B (12.5x EBITDA) instead of back-filling synergies to justify the EUR 1.5B ask, probability-weight the wide synergy band (low EUR 45M / base EUR 90M / bull EUR 130M) rather than capitalizing the base case in full, and read the CEO memo for anchoring, confirmation and planning-fallacy bias; (2) INSTALL procedural rationality BEFORE bidding — spend a limited governance budget (days against the 21-day clock + political capital with Brandt) on an outside-view valuation, a structured pre-mortem, a ratified walk-away price, a synergy red team and decision hygiene that separates the deal champion from the approver, each of which measurably shrinks the bias score and tightens the synergy estimate; (3) SET the binding bid premium under live auction pressure as the US major opens at EUR 1.35B and bankers signal "EUR 1.55B wins it," choosing whether to honor your walk-away line and how to hedge synergy risk with an earn-out / contingent value right and a stock-vs-cash mix while leverage climbs toward the 3.0x covenant; and (4) RECOVER — synergies land in the low/base/bull band partly as a function of the rigor you imposed, and you compute realized acquisition return and synergy-capture rate, then defend value or write the impairment-avoidance narrative.

The math rewards a standalone-anchored valuation, a funded safeguard package, a disciplined premium under the break-even line, and structure that hedges the uncertainty — and punishes the five classic errors: anchoring to the EUR 1.5B ask, treating base-case synergies as certain, skipping safeguards to save time, chasing the rival past the walk-away price (the winner's curse), and letting the champion override the approver so governance is theatre.

Final KPIs track Acquisition Return (EUR/share), Premium Paid (%), Synergy-Capture Rate (%), and Decision-Bias Score (lower better).

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.