QUESTION ONE A Merger can be defined as a Voluntary amalgamation of two firms on roughly equal terms into one new legal entity. Mergers are effected by exchange of the pre-merger stock (shares) for the stock of the new firm. Owners of each pre-merger firm continue as owners‚ and the resources of the merging entities are pooled for the benefit of the new entity. If the merged entities were competitors‚ the merger is called horizontal integration‚ if they were supplier or customer of one another
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MW Petroleum Corporation (A) 1. Structure and execute a DCF valuation of all the MW reserves using APV. How much are the reserves worth? Is your estimate more likely to be biased high or low? What are the sources of bias? Answer: The DCF valuation of all the MW reserves using APV indicates that the net worth of the portfolio is around $516.30 million. The estimate is more likely to be biased on the higher side. REVENUES: The data for the projections was collected by Morgan
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3 billion. The deal is the result of Buffet’s intense search‚ over several years to find an attractive acquisition. This case study evaluates the impact the acquisition has on the share price of both Berkshire Hathaway Ltd and Scottish Power. A valuation is conducted to assess whether the $5.1 billion dollars is a fair price. An analysis of Warren Buffet as a superior investor and how this contradicts finance theory and the semi strong form of efficiency. Then on a personal level the ethics and
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and Premium Valuations *Transaction multiples include premiums Stand-alone value Value with synergy Walkaway Price $578‚573 $672‚772 $528‚209 $725‚772 $924‚841 $580‚704 Trading Revenue Multiple Market Cap DCF Trading EBITDA Multiple Trans.* Revenue Multiple Trans.* Revenue Multiple $983‚490 $1‚348‚363 Below are variousProtalix’svaluations (thousands‚ as of April 1‚ 2012): Pfizer’s Walkway Price is advised to be $983‚490 thousand. We believe the DCF best reflects
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the context of business valuations (business valuations are covered in chapters 9-12). Slow Fashions - 20 marks‚ June 09 Your business - 28 marks‚ June 09 Seal island - 24 marks‚ June 2010 Q1i‚ii‚iii Seal island - 4 marks‚ June 2010 Q1iv Tisa Co- 4 marks‚ June 2012 Q4c Tisa Co- 8 marks‚ June 2012 Q4b Neptune- 6 marks‚ June 2008 Q5b 5: DCF TECHNIQUES AND THE USE OF FREE CASH FLOWS Maximisation of shareholder wealth Investment decision DCF techniques & the use of
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because CASY’s General Stores owned the real property which is used for operation just like the Old-TA. In our discounted cash flow model‚ the fair value of Old-TA (before acquisition) is $1.7billion with 7.7% of cost of capital. To arrive at our valuation‚ we consider Pro Forma Balance Sheet as basis and subtract post acquisition items such as $213million from HPT from Cash and Shareholder’s Equity and $105million capital lease obligation from Liabilities. Based on our scenario‚ we believe that $1
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com/supplements/infographic-highlights-2013-supplement-business-report Investment Banking: Valuation‚ Leveraged Buyouts‚ and Mergers & Acquisitions‚ 2nd Edition (Wiley Finance) EDGAR Company filings database 8. Annex and Supporting Excel Models: In our Analysis of Natural Alternatives International we performed both a DCF analysis and a Company comparables Analysis for our valuation linked below: DCF Valuation Model : Company Comps Analysis & Football field valuation summary :
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Case 1. Arundel Partners: The Sequel Project 1. Why do the principals of Arundel Partners think they can make money buying movie sequel rights? Why do the partners want to buy a portfolio of rights in advance rather than negotiating movie-by-movie to buy them? The principals at Arundel Partners believe that there is value that is not captured in a discounted cash flow when analyzing the launching of a film. They believe that by launching a new film‚ there is immediately an option to launch a sequel
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The depreciation is calculated as a 7‚2% growth of the 2010 year depreciation and the CapEx is depreciation + 60% of the profits (1-dividend). This gives us the FCF used in the terminal value calculation. REEBY SPORT 1A more conservative valuation‚ as a consequence of more competition in the market‚ will be based on a scenario where Reeby Sport will loose its competitive edge by 2010 and will have no growth from that date and forward. In that case we will capitalize 2011 earnings at
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Creating Public Shares According to Brau and Fawcet (2004)‚ the most common reason CFOs choose to provide an IPO on their firm is to create public shares for use in future acquisitions. While Rosetta Stone may not have immediate acquisition plans‚ the public offering of their shares will provide new capital for them to continue to expand. Only 5% of their revenue comes from outside of the United States‚ and with increased capital from an IPO‚ Rosetta Stone can look to pursue new markets (Schill
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